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The following are Marin Corp.s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to
The following are Marin Corp.s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Increase (Decrease) Cash $821,300 $698,500 $122,800 Accounts receivable 1,118,800 1,165,800 (47,000 ) Inventory 1,863,300 1,709,100 154,200 Property, plant, and equipment 3,292,300 2,950,900 341,400 Accumulated depreciation (1,153,700 ) (1,030,800 ) (122,900 ) Investment in Myers Co. 307,300 274,600 32,700 Loan receivable 248,800 248,800 Total assets $6,498,100 $5,768,100 $730,000 Accounts payable $1,010,500 $951,500 $59,000 Income taxes payable 30,300 49,600 (19,300 ) Dividends payable 80,000 100,200 (20,200 ) Lease liabililty 401,900 401,900 Common stock, $1 par 500,000 500,000 Paid-in capital in excess of parcommon stock 1,496,000 1,496,000 Retained earnings 2,979,400 2,670,800 308,600 Total liabilities and stockholders equity $6,498,100 $5,768,100 $730,000 Additional information: 1. On December 31, 2019, Marin acquired 25% of Myers Co.s common stock for $274,600. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,098,400. Myers reported income of $130,800 for the year ended December 31, 2020. No dividend was paid on Myerss common stock during the year. 2. During 2020, Marin loaned $301,400 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $52,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Marin sold equipment costing $60,500, with a carrying amount of $38,100, for $40,000 cash. 4. On December 31, 2020, Marin entered into a capital lease for an office building. The present value of the annual rental payments is $401,900, which equals the fair value of the building. Marin made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $388,600. 6. Marin declared and paid the following cash dividends for 2020 and 2019. 2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $80,000 $100,200 Prepare a statement of cash flows for Marin Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Prepare a statement of cash flows for Marin Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
The following are Marin Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 2020 $821,300 1,118,800 1,863,300 3,292,300 (1,153,700 ) 307,300 248,800 $6,498,100 2019 $698,500 1,165,800 1,709,100 2,950,900 (1,030,800 274,600 Increase (Decrease) $122,800 (47,000) 154,200 341,400 (122,900 ) 32,700 248,800 $730,000 $5,768,100 $951,500 49,600 100,200 $59,000 (19,300 ) (20,200 ) 401,900 Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,010,500 30,300 80,000 401,900 500,000 1,496,000 2,979,400 $6,498,100 500,000 1,496,000 2,670,800 $5,768,100 308,600 $730,000 Additional information: 1. On December 31, 2019, Marin acquired 25% of Myers Co.'s common stock for $274,600. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,098,400. Myers reported income of $130,800 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. 2. During 2020, Marin loaned $301,400 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $52,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Marin sold equipment costing $60,500, with a carrying amount of $38,100, for $40,000 cash. 4. On December 31, 2020, Marin entered into a capital lease for an office building. The present value of the annual rental payments is $401,900, which equals the fair value of the building. Marin made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $388,600. 6. Marin declared and paid the following cash dividends for 2020 and 2019. 2020 Declared December 15, 2020 Paid February 28, 2021 Amount $80,000 2019 December 15, 2019 February 28, 2020 $100,200 Prepare a statement of cash flows for Marin Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARIN CORP. Statement of Cash Flows Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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