Question
Sketchers Corporations recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Changes Assets Cash and cash equivalents $39,000 $63,800 $24,800
Sketchers Corporations recent comparative balance sheet and income statement follow.
Balance Sheets, December 31 | 2019 | 2020 | Changes |
Assets | |||
Cash and cash equivalents | $39,000 | $63,800 | $24,800 |
Accounts receivable (net) | 68,000 | 72,200 | 4,200 |
Merchandise inventory | 156,000 | 152,000 | (4,000) |
Investments, long-term | 20,000 | 20,000 | |
Plant assets | 337,000 | 361,000 | 24,000 |
Accumulated depreciation | (88,000) | (74,000) | 14,000 |
Total assets | $512,000 | $595,000 | |
Liabilities and Stockholders Equity | |||
Accounts payable | $45,000 | $40,000 | (5,000) |
Salaries payable | 3,000 | 1,000 | (2,000) |
Income taxes payable | 4,000 | 7,000 | 3,000 |
Interest payable | 5,000 | 5,000 | 0 |
Bonds payable, issued at face value | 200,000 | 200,000 | 0 |
Common stock, no-par | 240,000 | 311,000 | 71,000 |
Retained earnings | 15,000 | 31,000 | 16,000 |
Total liabilities and stockholders equity | $512,000 | $595,000 | |
Income Statement | |||
For Year Ended December 31, 2020 | |||
Sales revenue | $240,000 | ||
Cost of goods sold | (144,000) | ||
Gross margin | $96,000 | ||
Depreciation expense | (12,000) | ||
Salaries expense | (24,000) | ||
Income tax expense | (20,000) | ||
Interest expense | (4,000) | ||
Net income | $36,000 |
Additional information: 1. Purchased a plant asset, $60,000; issued capital stock in full payment. 2. Purchased a long-term investment in equity securities accounted for cash, $20,000. 3. Declared and paid a cash dividend, $20,000. 4. Sold plant asset for $10,000 cash (cost, $36,000; accumulated depreciation, $26,000). 5. Sold capital stock, 1,000 shares at $11 per share cash.
Note: Do not use either the positive/negative sign or the dollar sign with your answers.
Required:
1 Net cash provided by operating activities using the indirect method is $ . 2 Net cash used by financing activities is $ . 3 Cash paid to suppliers, under the direct method, is $ . 4 Cash paid for interest, 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