In: Accounting
Following are selected balance sheet accounts of Windsor Bros.
Corp. at December 31, 2020 and 2019, and the increases or decreases
in each account from 2019 to 2020. Also presented is selected
income statement information for the year ended December 31, 2020,
and additional information.
Selected balance sheet accounts | |||||||||
---|---|---|---|---|---|---|---|---|---|
Assets |
2020 |
2019 |
Increase |
||||||
Accounts receivable |
$34,100 | $23,900 | $10,200 | ||||||
Property, plant, and equipment |
276,600 | 247,300 | 29,300 | ||||||
Accumulated depreciation—plant assets |
(179,700 | ) | (165,400 | ) | (14,300 | ) | |||
Liabilities and stockholders’ equity |
2020 |
2019 |
Increase |
||||||
Bonds payable |
$ 48,800 | $46,200 | $2,600 | ||||||
Dividends payable |
7,900 | 4,900 | 3,000 | ||||||
Common stock, $1 par |
21,800 | 19,000 | 2,800 | ||||||
Additional paid-in capital |
8,900 | 2,900 | 6,000 | ||||||
Retained earnings |
103,500 | 90,400 | 13,100 | ||||||
Selected income statement information for the year ended December 31, 2020: | |||||||||
Sales revenue |
$156,600 | ||||||||
Depreciation |
38,300 | ||||||||
Gain on sale of equipment |
14,700 | ||||||||
Net income |
31,000 |
Additional information:
1. | During 2020, equipment costing $44,500 was sold for cash. | |
2. | Accounts receivable relate to sales of merchandise. | |
3. | During 2020, $20,100 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. |
Determine the category (operating, investing, or financing) and the
amount that should be reported in the statement of cash flows for
the following items.
Activity |
||||||
---|---|---|---|---|---|---|
(a) |
Payments for purchase of property, plant, and equipment. |
select a kind of activity FinancingInvestingOperating |
$enter a dollar amount |
|||
(b) |
Proceeds from the sale of equipment. |
select a kind of activity FinancingInvestingOperating |
$enter a dollar amount |
|||
(c) |
Cash dividends paid. |
select a kind of activity FinancingInvestingOperating |
$enter a dollar amount |
|||
(d) |
Redemption of bonds payable. |
select a kind of activity FinancingInvestingOperating |
$enter a dollar amount |