Question

In: Accounting

Exercise 23-13 Bonita Inc., a greeting card company, had the following statements prepared as of December...

Exercise 23-13

Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

BONITA INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

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

4,000

Short-term loans payable

8,100

10,100

Long-term loans payable

59,900

69,400

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

55,900

33,600

Total liabilities & stockholders’ equity

$311,700

$293,200

BONITA INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue

$339,275

Cost of goods sold

174,600

Gross profit

164,675

Operating expenses

120,100

Operating income

44,575

Interest expense

$11,200

Gain on sale of equipment

2,000

9,200

Income before tax

35,375

Income tax expense

7,075

Net income

$28,300


Additional information:

1. Dividends in the amount of $6,000 were declared and paid during 2017.
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 $20,100 and was 70% depreciated was sold during 2017.


Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Solutions

Expert Solution


Related Solutions

Exercise 23-13 Ayayai Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-13 Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2017. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 34,600 18,000 Inventory 40,300 60,200 Prepaid rent 4,900 4,000 Equipment 152,400 130,600 Accumulated depreciation—equipment (34,800 ) (25,200 ) Copyrights 45,700 49,800 Total assets $310,500 $296,000 Accounts payable $46,100 $40,300 Income taxes payable 4,000 6,000 Salaries and wages...
Exercise 23-13 Ivanhoe Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-13 Ivanhoe Inc., a greeting card company, had the following statements prepared as of December 31, 2017. IVANHOE 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...
Exercise 23-14 Pearl Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-14 Pearl Inc., a greeting card company, had the following statements prepared as of December 31, 2017. PEARL INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 34,600 18,000 Inventory 40,300 60,200 Prepaid rent 4,900 4,000 Equipment 152,400 130,600 Accumulated depreciation—equipment (34,800 ) (25,200 ) Copyrights 45,700 49,800 Total assets $310,500 $296,000 Accounts payable $46,100 $40,300 Income taxes payable 4,000 6,000 Salaries and wages...
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...
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...
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...
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. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 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...
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...
Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 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...
Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017. GROUPER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT