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 Assets Cash and cash equivalents $32,000 $136,000 Accounts receivable
Sketchers Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $32,000 $136,000 Accounts receivable (net) 40,000 72,000 Inventory 80,000 96,000 Investment, long-term 16,000 Plant assets 240,000 376,000 Accumulated depreciation (40,000) (56,000) Total assets $368,000 $624,000 Liabilities and Stockholders' Equity Accounts payable $24,000 $40,000 Notes payable, short-term (nontrade) 32,000 24,000 Notes payable, long-term 80,000 144,000 Common stock, no-par 200,000 320,000 Retained earnings 32,000 96,000 Total liabilities andstockholders' equity $368,000 $624,000 Income Statement, For Year Ended December 31 Sales revenue Cost of goods sold Gross margin Depreciation expense Other operating expenses Net income 2020 $1,200,000 (720,000) 480,000 (16,000) (256,000) $208,000 Additional Information 1. Sold the long-term investment at cost, for cash. 2. Declared and paid a cash dividend of $56,000. 3. Purchased plant assets that cost $136,000; gave a $96,000 long-term note payable and paid $40,000 cash. 4. Paid a $32,000 long-term note payable by issuing common stock; market value, $32,000. 5. Issued a stock dividend, $88,000. Required Prepare the statement of cash flows for Sketchers Corporation for the year ended December 31, 2020, assuming the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments: $ Increase in accounts receivable, net Increase in inventory Increase in accounts payable Net cash provided (used) by operating activities Cash flows from investing activities Sale of long-term investment Net cash provided (used) by investing activities Cash flows from financing activities Cash paid for dividends Net cash provided (used) by financing activities Net increase in cash and cash equivalents during 2020 Cash and cash equivalents, January 1, 2020 Cash and cash equivalents, December 31, 2020 $ Noncash Disclosure Exchanged plant assets for long-term note $ Issuance of common stock for long-term note payment $
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