Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are Swifty Corp.'s comparative balance sheet accounts at December 31,2020 and 2019 , with a column showing the increase (decrease) from 2019 to

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following are Swifty Corp.'s comparative balance sheet accounts at December 31,2020 and 2019 , with a column showing the increase (decrease) from 2019 to 2020. Accounts payable $1,007,30029,70079,200396,700$954,20049,70099,500$53,100(20,000)(20,300)396,700 Income taxes payable Dividends payable Lease liabililty Common stock, \$1 par 500,000500,000 Paid-in capital in excess of par-common stock 1,485,2001,485,200 Retained earnings Total liabilities and stockholders' equity Additional information: 1. On December 31, 2019, Swifty acquired 25% of Myers Co.'s common stock for $272,900. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,091,600. Myers reported income of $156,800 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. 2. During 2020, Swifty loaned $296,700 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $48,800, plus interest at 10%, on December 31,2020. 3. On January 2, 2020, Swifty sold equipment costing $59,700, with a carrying amount of $37,600, for $40,300 cash. 4. On December 31, 2020, Swifty entered into a capital lease for an office building. The present value of the annual rental payments is $396,700, which equals the fair value of the building. Swifty made the first rental payment of $59,600 when due on January 2, 2021. 5. Net income for 2020 was $363,100. 6. Swifty declared and paid the following cash dividends for 2020 and 2019. \begin{tabular}{llll} & \multicolumn{1}{c}{2020} & \multicolumn{1}{c}{2019} \\ \cline { 2 - 2 } Declared & December 15, 2020 & & December 15, 2019 \\ Paid & February 28, 2021 & & February 28, 2020 \\ Amount & $79,200 & & $99,500 \end{tabular} Prepare a statement of cash flows for Swifty Corp. for the year ended December 31,2020 , using the indirect method. (Show amounts that derronce onath flow with pither a - siane 1500 or in narenthecis o (150001 )

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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen and Peter Brewer

14th edition

978-007811100, 78111005, 978-0078111006

More Books

Students also viewed these Accounting questions

Question

Is the writing clear? If not, how can it be improved?

Answered: 1 week ago

Question

What information does the audience need?

Answered: 1 week ago