Question
In: Accounting
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
|
BUFFALO INC. |
||||||
|---|---|---|---|---|---|---|
|
12/31/20 |
12/31/19 |
|||||
|
Cash |
$5,900 |
$7,000 |
||||
|
Accounts receivable |
61,500 |
51,300 |
||||
|
Short-term debt investments (available-for-sale) |
35,000 |
17,800 |
||||
|
Inventory |
40,400 |
60,200 |
||||
|
Prepaid rent |
5,000 |
4,000 |
||||
|
Equipment |
153,400 |
129,000 |
||||
|
Accumulated depreciation—equipment |
(35,100 |
) |
(25,100 |
) |
||
|
Copyrights |
46,300 |
49,600 |
||||
|
Total assets |
$312,400 |
$293,800 |
||||
|
Accounts payable |
$46,500 |
$40,200 |
||||
|
Income taxes payable |
4,100 |
6,000 |
||||
|
Salaries and wages payable |
8,100 |
4,000 |
||||
|
Short-term loans payable |
7,900 |
10,000 |
||||
|
Long-term loans payable |
60,200 |
68,700 |
||||
|
Common stock, $10 par |
100,000 |
100,000 |
||||
|
Contributed capital, common stock |
30,000 |
30,000 |
||||
|
Retained earnings |
55,600 |
34,900 |
||||
|
Total liabilities & stockholders’ equity |
$312,400 |
$293,800 |
||||
|
BUFFALO INC. |
||||
|---|---|---|---|---|
|
Sales revenue |
$338,750 |
|||
|
Cost of goods sold |
176,400 |
|||
|
Gross profit |
162,350 |
|||
|
Operating expenses |
119,600 |
|||
|
Operating income |
42,750 |
|||
|
Interest expense |
$11,500 |
|||
|
Gain on sale of equipment |
2,000 |
9,500 |
||
|
Income before tax |
33,250 |
|||
|
Income tax expense |
6,650 |
|||
|
Net income |
$26,600 |
|||
Additional information:
| 1. | Dividends in the amount of $5,900 were declared and paid during 2020. | |
| 2. | Depreciation expense and amortization expense are included in operating expenses. | |
| 3. | No unrealized gains or losses have occurred on the investments during the year. | |
| 4. | Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows 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).)
|
BUFFALO INC. |
|---|
Solutions
ekkarill92 answered 3 years agoRelated Solutions
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Buffalo Inc., a greeting card company, had the following
statements prepared as of December 31, 2017.
BUFFALO INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
12/31/17
12/31/16
Cash
$6,100
$7,100
Accounts receivable
62,400
51,000
Short-term debt investments (available-for-sale)
34,700
18,100
Inventory
40,400
60,300
Prepaid rent
4,900
4,000
Equipment
154,100
130,600
Accumulated depreciation—equipment
(34,900
)
(24,800
)
Copyrights
46,400
49,800
Total assets
$314,100
$296,100
Accounts payable
$46,500
$40,200
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
Wildhorse Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Wildhorse Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
WILDHORSE INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$6,900
Accounts receivable
61,900
50,600
Short-term debt investments (available-for-sale)
34,700
18,100
Inventory
40,000
59,400
Prepaid rent
5,000
4,000
Equipment
152,800
128,900
Accumulated depreciation—equipment
(34,900
)
(25,100
)
Copyrights
46,100
50,400
Total assets
$311,700
$293,200
Accounts payable
$45,800
$40,100
Income taxes payable
3,900
6,000
Salaries and wages payable
8,100...
Headland Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Headland Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
HEADLAND INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$6,900
Accounts receivable
62,500
51,000
Short-term debt investments (available-for-sale)
34,800
18,100
Inventory
39,600
60,200
Prepaid rent
4,900
4,000
Equipment
154,500
130,100
Accumulated depreciation—equipment
(34,800
)
(25,300
)
Copyrights
46,300
50,400
Total assets
$313,900
$295,400
Accounts payable
$46,000
$40,200
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
Pearl Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Pearl Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
PEARL INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$7,100
Accounts receivable
62,400
51,000
Short-term debt investments (available-for-sale)
34,700
18,100
Inventory
40,400
60,300
Prepaid rent
4,900
4,000
Equipment
154,100
130,600
Accumulated depreciation—equipment
(34,900
)
(24,800
)
Copyrights
46,400
49,800
Total assets
$314,100
$296,100
Accounts payable
$46,500
$40,200
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Metlock Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
METLOCK INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$5,900
$7,100
Accounts receivable
62,000
51,000
Short-term debt investments (available-for-sale)
35,000
18,100
Inventory
40,400
59,900
Prepaid rent
5,000
4,000
Equipment
153,300
129,100
Accumulated depreciation—equipment
(35,000
)
(24,800
)
Copyrights
46,300
50,300
Total assets
$312,900
$294,700
Accounts payable
$46,500
$40,200
Income taxes payable
4,100
6,100
Salaries and wages payable
8,100...
Sage Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Sage Inc., a greeting card company, had the following statements
prepared as of December 31, 2020.
SAGE INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$6,900
Accounts receivable
62,500
51,000
Short-term debt investments (available-for-sale)
34,800
18,100
Inventory
39,600
60,200
Prepaid rent
4,900
4,000
Equipment
154,500
130,100
Accumulated depreciation—equipment
(34,800
)
(25,300
)
Copyrights
46,300
50,400
Total assets
$313,900
$295,400
Accounts payable
$46,000
$40,200
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
Culver Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Culver Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
CULVER INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$7,000
Accounts receivable
62,200
51,500
Short-term debt investments (available-for-sale)
34,900
17,900
Inventory
40,300
60,500
Prepaid rent
5,000
3,900
Equipment
153,200
131,200
Accumulated depreciation—equipment
(35,000
)
(24,700
)
Copyrights
46,200
49,800
Total assets
$312,900
$297,100
Accounts payable
$46,000
$40,000
Income taxes payable
4,000
6,000
Salaries and wages payable
7,900...
Blossom Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Blossom Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
BLOSSOM INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,000
$6,900
Accounts receivable
61,800
50,900
Short-term debt investments (available-for-sale)
35,200
17,900
Inventory
40,300
60,600
Prepaid rent
5,100
3,900
Equipment
155,100
131,300
Accumulated depreciation—equipment
(35,200
)
(24,800
)
Copyrights
45,800
50,400
Total assets
$314,100
$297,100
Accounts payable
$45,600
$40,000
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
Sheffield Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Sheffield Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
SHEFFIELD INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$5,900
$6,900
Accounts receivable
61,400
50,800
Short-term debt investments (available-for-sale)
35,000
17,800
Inventory
40,000
59,400
Prepaid rent
5,000
3,900
Equipment
155,200
129,000
Accumulated depreciation—equipment
(35,000
)
(25,000
)
Copyrights
45,600
49,900
Total assets
$313,100
$292,700
Accounts payable
$46,300
$39,800
Income taxes payable
3,900
6,100
Salaries and wages payable
7,900...
Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Skysong Inc., a greeting card company, had the following
statements prepared as of December 31, 2017.
SKYSONG INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
12/31/17
12/31/16
Cash
$5,900
$7,000
Accounts receivable
61,400
51,500
Short-term debt investments
(available-for-sale)
35,000
18,200
Inventory
40,000
60,500
Prepaid rent
5,000
4,100
Equipment
152,900
131,100
Accumulated
depreciation—equipment
(35,200
)
(25,100
)
Copyrights
45,800
50,000
Total assets
$310,800
$297,300
Accounts payable
$46,100
$40,100
Income taxes payable
3,900
5,900
Salaries and wages
payable
8,000...
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