Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The financial statements of Trimmer Inc. appear below: TRIMMER INC. Comparative Balance Sheet December 31 2020 2019 Assets Cash 35,000 20,000 Accounts receivable 112,000 103,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The financial statements of Trimmer Inc. appear below: TRIMMER INC. Comparative Balance Sheet December 31 2020 2019 Assets Cash 35,000 20,000 Accounts receivable 112,000 103,000 Inventory 425,000 460,000 Property, plant and equipment 750,000 800,000 Accumulated depreciation 375,000 330,000 Total assets 947,000 1,053,000 Liabilities & Shareholders' Equity Accounts payable 42,000 68,000 Income taxes payable 18,000 13,000 Bonds payable 825,000 860,000 Common shares, 10,000 shares issued 55,000 42,000 7,000 70,000 Retained earnings Total liabilities and shareholders equity 947,000 1,053,000 TRIMMER INC. Income Statement Year Ended December 31, 2020 Sales $932,000 Cost of goods sold 608,000 TRIMMER INC. Income Statement Year Ended December 31, 2020 Sales $932,000 Cost of goods sold 608,000 Gross profit 324,000 Operating expenses 294,000 Profit from operations 30,000 Interest expense 12,000 Loss on sale of equipment 15,000 Profit before income taxes 3,000 Income tax expense 5,000 -$2,000 Net loss The following additional data were provided: 1. During the year, equipment was sold. This equipment cost $75,000 originally and had a carrying amount of $32,000 at the time of sale. 2. During the year, replacement equipment was purchased for $25,000 cash. 3. All depreciation expense is in the operating expenses category. 4 All sales and purchases are on account 5. Accounts payable pertain to merchandise suppliers. 6. All operating expenses except for depreciation were paid in cash. Instructions a) Prepare a cash flow statement for TRIMMER Inc., using the direct method or indirect method. ***SHOW YOUR WORK FOR PARTIAL MARKS!!!*** c? E E 1 BI A FS TITLE HERE Operating Activities Cash provided by (used) in operating activities I 1 Investing Activities Cash provided by (used) in investing activities Financing Activities Cash provided by (used) in financing activities Change in cash Opening cash Endinn nach

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren

3rd Canadian Edition

0130355801, 978-0130355805

More Books

Students also viewed these Accounting questions