Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company Additional information from Wright's

image text in transcribed
image text in transcribed
image text in transcribed
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company Additional information from Wright's accounting records is provided also WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 Assets 2020 Cash Accounts receivable $ 84 $ 50 Short-term investment 91 95 39 Inventory 16 96 90 Land 66 80 Buildings and equipment 555 440 Less: Accumulated depreciation 239) $ 792 676 Liabilities Accounts payable $ 31 $ 39 Salaries payable 2 6 Interest payable 5 4 Income tax payable B 13 Notes payable 0 23 Bonde payable 286 140 Shareholders' Equity Common stock 295 240 Paid-in capital-excess of par 149 120 Retained earnings 116 $ 792 $ 676 (95) 91 WRIGHT COMPANY Income Statement HIKIGHT COMPANY Tncome Statement For Year Ended December 31, 2021 in thousands) Revenues Sales revenue $ 400 Expenses Cont of goods sold $ 170 Salaries expense 43 Depreciation expense 44 Interest expense 13 Loss on sale of land 4 Income tax expen.se 56 330 Net LCDG $ 70 Additional information from the accounting records a b. The common stock of Microsoft Corporation was purchased for $23,000 as a short-term Investment not classified as a cash equivalent. c. New eg nt was purchased for $115,000 cash d. A $23,000 note was paid at maturity on January 1 e. On January 1, 2021. bonds were sold at their $46,000 face value 1. Common stock ($55,000 par) was sold for $84.000 g. Net Income was $70,000 and cash dividends of $45,000 were paid to shareholders Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (.e., 10,000 should be entered as 10).) Dok ce WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 (5 in thousanda) Cash flows from operating activities Cash flow From customers Cash outflows To suppliers of goods To employees For interest For income taxe 0 Net cash flows from operating activities Cash flows from investing activities

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

What are the reasons for the increase in revenue?

Answered: 1 week ago

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago