Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sketchers Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Changes Assets Cash and cash equivalents $39,000 $63,000 $24,000
Sketchers Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Changes Assets Cash and cash equivalents $39,000 $63,000 $24,000 Accounts receivable (net) 58,000 55,000 (3,000) Merchandise inventory 136,000 160,000 24,000 Investments, long-term 10,000 (10,000) Plant assets 337,000 367,000 30,000 Accumulated depreciation (88,000) (89,000) (1,000) Total assets $492,000 $556,000 $64,000 Liabilities and Stockholders' Equity Accounts payable $15,000 $9,000 ($6,000) Salaries payable 3,000 4,000 1,000 Income taxes payable 4,000 6,000 2,000 5,000 5,000 0 Interest payable Bonds payable, issued at face value 200,000 200,000 0 Common stock, no-par 240,000 288,000 48,000 Retained earnings 25,000 44,000 19,000 Total liabilities and stockholders' equity $492,000 $556,000 $64,000 Income Statement For Year Ended December 31, 2020 Sales revenue $234,000 Cost of goods sold (114,000) Gross marain $120.000 Income Statement For Year Ended December 31, 2020 Sales revenue $234,000 Cost of goods sold (114,000) $120,000 Gross margin Depreciation expense (26,000) Salaries expense Income tax expense (24,000) (20,000) Interest expense (4,000) Loss on sale of plant assets (3,000) Net income $43,000 Additional information: 1. Purchased a plant asset, $60,000; issued capital stock in full payment. 2. Sold a long-term investment in equity securities at cost accounted for cash, $10,000. 3. Declared and paid a cash dividend, $24,000. 4. Sold plant asset for $2,000 cash (cost, $30,000; accumulated depreciation, $25,000). 5. Retired capital stock, 1,000 shares at the original selling price, $12 per share. Note: Do not use either the positiveegative sign or the dollar sign with your answers. Required: 1 Net cash provided by operating activities using the indirect method is $ 2 Net cash provided by investing activities is $ 3 Cash collected from customers, under the direct method, is $ 4 Cash paid to suppliers, under the direct method, is $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started