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These are the choices you have for the fill in the blankets Problem 21-2 (Algo) Statement of cash flows; direct method [LO21-3, 21-8] The comparative
These are the choices you have for the fill in the blankets
Problem 21-2 (Algo) Statement of cash flows; direct method [LO21-3, 21-8] 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 2020 $ Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ 82 87 36 89 62 540 (133) $ 763 45 90 14 85 75 430 (90) 649 $ HA $ Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 29 6 5 8 0 174 ca o 38 8 3 12 22 130 NN WOO 00 280 140 121 230 115 91 $ 763 $ 649 $ 390 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues : Sales revenue Expenses: Cost of goods sold $ 160 Salaries expense 46 Depreciation expense 43 Interest expense 12 Loss on sale of land 5 Income tax expense 54 Net income 320 $ 70 Additional information from the accounting records: a. Land that originally cost $13,000 was sold for $8,000. b. The common stock of Microsoft Corporation was purchased for $22,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $110,000 cash. d. A $22,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $44,000 face value. f. Common stock ($50,000 par) was sold for $75,000. g. Net income was $70,000 and cash dividends of $40,000 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 (i.e., 10,000 should be entered as 10).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 (s in thousands) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest For income taxes Purchase of short-term investment $ Net cash flows from operating activities. Cash flows from investing activities: Purchase of equipment Sale of land 0 Net cash flows from investing activities Cash flows from financing activities: Repayment of notes payable Sale of common stock Sale of bonds payable Payment of dividends 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0 For income taxes For interest From customers Payment of dividends Purchase of equipment Purchase of short-term investment Repayment of notes payable Sale of bonds payable Sale of common stock Sale of land To employees To suppliers of goodsStep by Step Solution
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