Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet for Long Company as of December 31, 2019 and 2018, is shown below, followed by the condensed income statement. Additional information

The comparative balance sheet for Long Company as of December 31, 2019 and 2018, is shown below, followed by the condensed income statement.

image text in transcribedimage text in transcribed

Additional information for the year follows.

  1. Acquired land at a cost of $48,000; paid one-half of the purchase price in cash and issued common stock for the balance.
  2. Sold used equipment for $16,000 in cash. The original cost was $43,000; depreciation of $8,000 had been taken. The remaining change in the Property, Plant, and Equipment account represents a purchase of equipment for cash. Total depreciation expense for the year was $8,600.
  3. Issued bonds payable at par value for cash.
  4. Sold bond investments costing $16,000 at no gain or loss during the year.
  5. Paid $18,000 cash dividends on the common stock.

Required: Prepare a statement of cash flows for 2019. Analyze: By what percentage did Cash increase from January 1 to December 31?

image text in transcribed

image text in transcribed

LONG COMPANY Comparative Balance Sheet December 31, 2019 and 2018 Assets Cash Accounts Receivable (Net) Merchandise Inventory Prepaid Rent Land Property, plant, and Equipment Less: Accumulated Depreciation-PPE Investment in TVA Bonds Total Assets Liabilities and Stockholders' Equity Liabilities Accounts Payable Income Taxes Payable Bonds Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 2019 $105,875 85,600 82,050 5,100 71,000 187,000 (22,100) 30,000 $544,525 2018 $ 51,450 67,050 73,600 4,300 23,000 215,000 (21,500) 46,000 $458,900 65,900 9,450 132,000 $207,350 86,000 9,900 96,000 $191,900 88,000 249,175 $337,175 $544,525 71,000 196,000 $267,000 $458,900 $805,000 SD LONG COMPANY Condensed Income Statement Year Ended December 31, 2019 Revenues Costs and Expenses Cost of Goods Sold Depreciation Expense Selling and Administrative Expenses Interest Expense Loss on Sale of Equipment Income Taxes Expense Total Costs and Expenses Net Income After Income Taxes 474,750 8,600 196,650 18,100 19,000 23,725 $740,825 $ 64,175 Complete this question by entering your answer in the tabs below. Stmt of Cash Flows Analyze Prepare a statement of cash flows for 2019. (Amounts to be deducted should be indicated with a minus sign.) LONG COMPANY Statement of Cash Flows Year Ended December 31, 2019 Cash flows from operating activities Adjustments: Total adjustments Cash flows from investing activities Cash flows from financing activities Stmt of Cash Flows Analyze By what percentage did Cash increase from January 1 to December 31? (Round your percentage answer to 1 decimal place. i.e., 0.123 should be entered as 12.3.) Percentage of Increase in Cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Risk Based-Approach

Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

11th Edition

1337619455, 1337619450, 9781337670203 , 978-1337619455

More Books

Students also viewed these Accounting questions