Question
Solve the question on the left. The question on the right is the same question that has been correctly answered already, they just have different
Solve the question on the left. The question on the right is the same question that has been correctly answered already, they just have different numbers. Show your work.
(Click the icon to view the income statement.) The 2021 and 2020 comparative balance sheets and 2021 income statement of Plumbing Supply Corp. follow. (Click the icon to view the comparative balance sheet.) Plumbing Supply had no noncash investing and financing transactions during 2021. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock tra Read the requirements. Requirement 1. Prepare the company's 2021 statement of cash flows using the direct method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use par Perfect Supply Corp. Statement of Cash Flows (Direct Method) Requirement 1. Prepare the company's 2021 statement of cash flows using the direct method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Plumbing Supply Corp. Statement of Cash Flows (Direct Method) Year Ended December 31, 2021 Cash flows from operating activities: Receipts: Payments: Total cash payments Net cash provided by (used for) operating activities Data table Plumbing Supply Corp. Income Statement Year Ended December 31, 2021 Year Ended December 31, 2021 Cash flows from operating activities: Receipts: Revenues: Perfect Supply Corp. Income Statement Year Ended December 31, 2021 Sales revenue Expenses: Cost of goods sold $ 447,000 $ 187,500 Data table Plumbing Supply Corp. Comparative Balance Sheets Collections from customers Payments: To suppliers To employees 450,300 Salary expense 76,100 Depreciation expense 16,100 (243,700) Other operating expense 50,500 (65,200) Interest expense 24,400 For interest (24,400) 28,600 2021 December 31, 2020 Income tax expense Increase (Decrease) For income tax (28,600) Total expenses 383,200 Current assets: Total cash payments Cash and cash equivalents $ Accounts receivable 17,300 $ 52,200 14,000 $ 50,000 3,300 Net cash provided by (used for) operating activities (361,900) 88,400 $ 63,800 Net income 2,200 Cash flows from investing activities: D Purchase of land (41,500) Inventories 60,400 59,000 1,400 Print Done Prepaid expenses 1,900 4,800 (2,900) Purchase of equipment (28,700) Plant assets: Land Net cash provided by (used for) investing activities (70,200) 63,600 63,200 33,300 49,700 30,300 Cash flows from financing activities: 13,500 Payment of dividends (49,200) Equipment, net $ 258,600 $210,800 $ 47,800 Issuance of note payable 21,000 Total assets Issuance of common stock 23,900 Current liabilities: Accounts payable Salary payable Other accrued liabilities Long-term liabilities: $ 438,000 Notes payable $ 35,200 $ 27,400 $ 7,800 Net cash provided by (used for) financing activities Net increase (decrease) in cash 24,000 13,100 10,900 Cash balance, December 31, 2020 20,800 23,700 (2,900) Cash balance, December 31, 2021 53,000 39,000 14,000 Requirement 2. How will what you learned in this problem help you evaluate an investment? OA. Learn how companies prepare the statement of cash flows in order to understand the meaning of cash flow Stockholders' equity: Common stock, no-par Retained earnings 88,100 66,400 21,700 37,500 41,200 (3,700) OB. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash C. Both A and B. $ 258,600 $210,800 $ 47,800 Total liabilities and stockholders' equity D. None of the above. Prepaid expenses Plant assets: Land Equipment, net Total assets Current liabilities: Accounts payable Salary payable December 31, 2021 2020 Increase (Decrease) Current assets: Cash and cash equivalents $ 17,900 $ 4,000 $ 13,900 (4,300) Accounts receivable 39,700 43,000 (3,300) $ 13,900 Inventories 65,900 52,900 13,000 4,000 2,500 4,800 (2,300) 17,900 63,600 62,100 22,100 41,500 49,500 12,600 $ 251,700 $ 176,300 $ 75,400 Other accrued liabilities $ 35,300 $ 28,000 $ 7,300 17,000 6,100 10,900 22,100 24,400 (2,300) Revenues: Sales revenue Expenses: Cost of goods sold $ 186,500 Salary expense 76,700 Depreciation expense 15,000 Other operating expense 50,600 Interest expense 24,700 28,900 Income tax expense 382,400 Total expenses $ 55,600 Net income Print Done Print Done Get more help Long-term liabilities: Notes payable Stockholders' equity: 58,000 37,000 21,000 Common stock, no-par 88,400 64,500 23,900 30,900 16,300 14,600 Retained earnings Total liabilities and stockholders' equity $ 251,700 $ 176,300 $ 75,400
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