statement ot Cash lows Angela\'s Cleaning Consortium Comparative Balance Sheet D
ID: 2412291 • Letter: S
Question
statement ot Cash lows Angela's Cleaning Consortium Comparative Balance Sheet December 31, 2020 and 2019 Seymour-Johnson, Inc. Income Statement For the Year Ended December 31, 2020 2020 2019 Net sales Cost of goods sold Gross profit ASSETS Current assets 174,000 Cash Accounts receivable Merchandise inventory S 66,500 $ 62,000 95,000 113.000 172,000 165,000 333,500 340,000 expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other revenues and gains 66,000 (25,000) Total current asset:s Investment in Walking Dead Co Less: Accumulated depreciation 55,000 Long-term investments Property, buildings, and e Total assets Current liabilities 507,000 304.000 nterest revenue Dividend revenue Gain on disposal of plant asset:s 15,000 9,700 nt 42,000) 781,000 $ 652,000 Liabilities and Stockholders Equit Other expenses and losses Interest expense Accounts Accrued liabilities Total current assets S 144,000$ 175,000 47,000 222,000 Income before income taxes Income tax expense Net Income 76,700 14,000) $ 62,700 able 17,000 161,0002 160,000 321,000 312.000 370,000 term Liabilities Notes payable, long-term 90,000 Total liabilities Stockholders' e Common stock Retained earnings 250,000 90,000 140,000Explanation / Answer
Cash Flow Statement (Indirect Method):-
Cash flow from Operating Actvities:-
Net Income
62700
Adjustment to reconcile net income to net cash:-
Gain on sale of plant
-12000
Dividend Revenue
-9700
Interest Revenue
-15000
Depreciation Exp
25000
Decrease A/c receivable
18000
Increase Inventory
-7000
Decrease A/c payable
-31000
Decrease Accrued Liab
-30000
Cash flow from Operating Actvities (A)
1000
1000
Cash flow from Investing Actvities:-
Dividend Revenue
9700
Interest Revenue
15000
Plant sold (75000 – 7500 + 12000)
79500
Purchased plant asset (507000 – 304000 + 75000)
-278000
Sold investment in walking co.
50000
Cash flow from Investing Actvities (B)
-123800
-123800
Cash flow from Financing Actvities:-
Issue common stock
120000
Purchase Treasury stock
-50000
Issue Notes Payable
70000
Dividend Paid (90000 + 62700 – 140000)
-12700
Cash flow from Financing Actvities (C)
127300
127300
Total cash flow (A +B +C)
4500
(+) Beginning cash flow
62000
Ending cash flow
66500
Plant Asset A/c
To bal b/d
304000
By cash (sold)
79500
To cash (purchase)
278000
By acc Dep (asset sold)
7500
To gain on sale
12000
By bal c/d
507000
594000
594000
To bal b/d
507000
Accumulated Dep:-
To Plant Asset(sold)
7500
By bal b/d
42000
To bal c/d
59500
By Dep exp
25000
67000
67000
By bal b/d
59500
Retained Earnings:-
To Dividend Paid
12700
By bal b/d
90000
To bal c/d
140000
By Net Income
62700
152700
152700
By Bal b/d
140000
Journal Entry for sale of Plant:-
Cash A/c Dr 79500
Accumulated Dep A/c Dr 7500
To Plant Asset Cr 75000
To gain on plant sold Cr 12000
Cash flow from Operating Actvities:-
Net Income
62700
Adjustment to reconcile net income to net cash:-
Gain on sale of plant
-12000
Dividend Revenue
-9700
Interest Revenue
-15000
Depreciation Exp
25000
Decrease A/c receivable
18000
Increase Inventory
-7000
Decrease A/c payable
-31000
Decrease Accrued Liab
-30000
Cash flow from Operating Actvities (A)
1000
1000
Cash flow from Investing Actvities:-
Dividend Revenue
9700
Interest Revenue
15000
Plant sold (75000 – 7500 + 12000)
79500
Purchased plant asset (507000 – 304000 + 75000)
-278000
Sold investment in walking co.
50000
Cash flow from Investing Actvities (B)
-123800
-123800
Cash flow from Financing Actvities:-
Issue common stock
120000
Purchase Treasury stock
-50000
Issue Notes Payable
70000
Dividend Paid (90000 + 62700 – 140000)
-12700
Cash flow from Financing Actvities (C)
127300
127300
Total cash flow (A +B +C)
4500
(+) Beginning cash flow
62000
Ending cash flow
66500
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