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.
Additional information:
a. land that originally cost $10,000 was sold for $7,000.
b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent.
c. New equipment was purchased for $150,000 cash.
d. A $30,000 note was paid at maturity on January 1.
e. On January 1, 2021, bonds were sold at their $60,000 face value.
f. Common stock ($50,000 par) was sold for $76,000.
g. Net income was $80,000 and cash dividends of $35,000 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. (You may omit the schedule to reconcile net income with cash flows from operating activities.)
Please help with this homework problem. Please show all calculations and follow the format of the attached images, thank you!
WRIGHT COMPANY Spreadsheet for the Statement of Cash Flows Dec. 31 2020 Changes Debits Credits Dec. 31 2021 Balance Sheet Assets: Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Acc. depreciation 400 (75) 575 Liabilities: Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable 200 Shareholders' Equity: Common stock Paid-in capital - excess of par Retained earnings 100 575 Statement of Income Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income Statement of Cash Flows Operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest expense For income taxes Net cash flows Investing activities: Sale of land Purchase of short-term investment Purchase of equipment Net cash flows Financing activities: Repayment of notes payable Sale of bonds payable Sale of common stock Payment of dividends Net cash flows Net increase in cash Totals WRIGHT COMPANY Statement of Cash Flows For year ended December 31, 2021 (in $000) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest For income taxes Net cash flows from operating activities Cash flows from investing activities: Sale of land Purchase of short-term investment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Repayment of notes payable Sale of bonds payable Sale of common stock Payment of dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 WRIGHT COMPANY Balance Sheet and Income Statement data are given in the problem. $ $ Additional information: Original land cost Land selling price Common stock purchase New equipment cost Note payment, 1/1/2021 Bond sale, 1/1/2021 Common stock sold Common stock par Net income Cash dividends paid 10,000 7,000 25,000 150,000 30,000 60,000 76,000 50,000 80,000 35,000 $ 2020 $ 30 70 60 WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 Assets Cash $ 42 Accounts receivable Short-term investment Inventory Land Buildings and equipment 550 Less: Accumulated depreciation (115) $ 715 Liabilities Accounts payable $ 28 Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par 126 Retained earnings 400 (75) $575 $ 35 5 3 12 8 |g/ *#|| 250 200 100 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) $380 $ 130 Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income "| ditional information from the accounting records Land that originally cost $10,000 was sold for $7,000. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not clas sified as a cash equivalent
