Question
SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6,900 Accounts receivable 61,900 50,500 Short-term debt investments (available-for-sale)
SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 | ||||||
---|---|---|---|---|---|---|
12/31/20 | 12/31/19 | |||||
Cash | $6,100 | $6,900 | ||||
Accounts receivable | 61,900 | 50,500 | ||||
Short-term debt investments (available-for-sale) | 34,800 | 18,200 | ||||
Inventory | 39,900 | 59,800 | ||||
Prepaid rent | 4,900 | 4,000 | ||||
Equipment | 155,500 | 131,200 | ||||
Accumulated depreciationequipment | (34,800 | ) | (25,300 | ) | ||
Copyrights | 45,700 | 50,200 | ||||
Total assets | $314,000 | $295,500 | ||||
Accounts payable | $46,200 | $39,700 | ||||
Income taxes payable | 4,000 | 6,100 | ||||
Salaries and wages payable | 7,900 | 4,000 | ||||
Short-term loans payable | 7,900 | 10,000 | ||||
Long-term loans payable | 59,800 | 68,600 | ||||
Common stock, $10 par | 100,000 | 100,000 | ||||
Contributed capital, common stock | 30,000 | 30,000 | ||||
Retained earnings | 58,200 | 37,100 | ||||
Total liabilities & stockholders equity | $314,000 | $295,500 |
SWIFTY INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 | ||||
---|---|---|---|---|
Sales revenue | $335,575 | |||
Cost of goods sold | 173,200 | |||
Gross profit | 162,375 | |||
Operating expenses | 119,100 | |||
Operating income | 43,275 | |||
Interest expense | $11,400 | |||
Gain on sale of equipment | 2,000 | 9,400 | ||
Income before tax | 33,875 | |||
Income tax expense | 6,775 | |||
Net income | $27,100 |
Additional information:
1. | Dividends in the amount of $6,000 were declared and paid during 2020. | |
2. | Depreciation expense and amortization expense are included in operating expenses. | |
3. | No unrealized gains or losses have occurred on the investments during the year. | |
4. | Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows using the direct method
SWIFTY INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers $ $ Cash Flows from Investing Activities Sale of Equipment 8030 Purchase of Equipment Sale of Available-for-Sale Investments -16600 16600Step by Step Solution
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