Question

In: Accounting

Question 12 A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet...

Question 12

A comparative balance sheet for Rocker Company appears below:

ROCKER COMPANY
Comparative Balance Sheet
Dec. 31, 2020 Dec. 31, 2019
Assets
Cash $34,000 $11,000
Accounts receivable 18,000 13,000
Inventory 25,000 17,000
Prepaid expenses 6,000 9,000
Long-term investments 0 17,000
Equipment 60,000 33,000
Accumulated depreciation—equipment (20,000 ) (15,000 )
    Total assets $123,000 $85,000
Liabilities and Stockholder's Equity
Accounts payable $17,000 $7,000
Bonds payable 36,000 45,000
Common stock 40,000 23,000
Retained earnings 30,000 10,000
    Total liabilities and stockholders' equity $123,000 $85,000
Additional information:
1. Net income for the year ending December 31, 2020 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Sales for 2020 were $120,000.


*Prepare a statement of cash flows for the year ended December 31, 2020, 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).)

Solutions

Expert Solution

Answer:-

Rocker Company
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED 2020
Particulars Amount
$  
Cash flow from operating activities
Net Income 35000
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation 5000
Loss on sale of investments 3000
Change in operating assets & liabilities
Increase in accounts receivable -5000
Increase in inventory -8000
Decrease in prepaid expenses 3000
Increase in accounts payable 10000
Net cash flow from operating activities (a) 43000
Cash Flow from Financing activities
Dividends paid -15000
Bonds payable paid -9000
Common stock issued 17000
Net cash Flow from Financing activities (b) -7000
Cash Flow from Investing activities
Sale of long term investments 14000
Purchase of equipment -27000
Net cash Flow from Investing activities (c) -13000
Net Change in cash c=a+b+c 23000
Beginning cash balance 11000
Closing cash balance 34000

ekkarill92 answered 9 months ago
Next > < Previous

Related Solutions

) The comparative balance sheet of Ahmed & Company appears below: Ahmed & Company Comparative Balance...
) The comparative balance sheet of Ahmed & Company appears below: Ahmed & Company Comparative Balance Sheet December 31, Assets                                                                                                                 2019            2018                                                                                                                          (‘000)           (‘000) Current assets ..........................................................................................        $   450             $280 Plant assets ..............................................................................................             550             520       Total assets ........................................................................................        $1,000             $800 Liabilities and stockholders' equity Current liabilities .....................................................................................        $   180             $120 Long-term debt .......................................................................................             250               160 Common stock ........................................................................................             310               320 Retained earnings ...................................................................................             260             200       Total liabilities and stockholders'...
Problem 4: a) The comparative balance sheet of X Company appears below: X Company Comparative Balance...
Problem 4: a) The comparative balance sheet of X Company appears below: X Company Comparative Balance Sheet December 31, ———————————————————————————————— Assets                                                                                      2018        2017 Current assets.................................................................... $   360,000 $300,000 Plant assets .......................................................................      640,000   500,000 Total assets ...................................................................... $1,000,000   $800,000 Liabilities and stockholders' equity Current liabilities .............................................................. $   150,000 $120,000 Long-term debt ................................................................. 240,000    160,000 Common stock ................................................................. 350.000    280,000 Retained earnings .............................................................      260,000   240,000      Total liabilities and stockholders' equity ..................... $1,000,000    $800,000 Instructions (a)   Using horizontal analysis,...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 31,000 $ 28,000 Accounts receivable 18,000 20,000 Inventory 58,000 56,000 Prepaid expenses 12,000 10,000 Total current assets 119,000 114,000 Property, plant, and equipment 374,000 354,000 Less accumulated depreciation 190,000 165,000 Net property, plant, and equipment 184,000 189,000 Total assets $ 303,000 $ 303,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 13,000 $ 9,000 Accrued liabilities 52,000...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 32,000 $ 25,800 Accounts receivable 18,500 21,000 Inventory 60,000 57,500 Prepaid expenses 12,200 10,100 Total current assets 122,700 114,400 Property, plant, and equipment 386,000 366,000 Less accumulated depreciation 193,000 164,700 Net property, plant, and equipment 193,000 201,300 Total assets $ 315,700 $ 315,700 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 14,700 $ 10,000 Accrued liabilities 53,000...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 33,000 $ 26,300 Accounts receivable 19,000 22,000 Inventory 62,000 59,000 Prepaid expenses 12,400 10,200 Total current assets 126,400 117,500 Property, plant, and equipment 398,000 378,000 Less accumulated depreciation 199,000 170,100 Net property, plant, and equipment 199,000 207,900 Total assets $ 325,400 $ 325,400 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 16,200 $ 11,000 Accrued liabilities 54,000...
Illies Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Illies Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 45,000 $ 38,000 Accounts receivable 24,000 26,500 Inventory 72,000 74,500 Total current assets 141,000 139,000 Property, plant, and equipment 373,000 349,000 Less accumulated depreciation 166,000 137,000 Net property, plant, and equipment 207,000 212,000 Total assets $ 348,000 $ 351,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 23,000 $ 24,500 Accrued liabilities 59,000 64,500 Income taxes payable...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 39,000 $ 29,300 Accounts receivable 22,000 28,000 Inventory 74,000 68,000 Prepaid expenses 13,600 10,800 Total current assets 148,600 136,100 Property, plant, and equipment 470,000 450,000 Less accumulated depreciation 235,000 202,500 Net property, plant, and equipment 235,000 247,500 Total assets $ 383,600 $ 383,600 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 25,800 $ 17,000 Accrued liabilities 60,000...
Presented below is the comparative balance sheet for Martinez Company. Martinez Company Comparative Balance Sheet As...
Presented below is the comparative balance sheet for Martinez Company. Martinez Company Comparative Balance Sheet As of December 31, 2021 and 2020 December 31 2021 2022 Assets Cash $181,000 $272,500 Accounts receivable (net) 218,100 155,200 Short-term investments 271,100 149,100 Inventories 1,066,900 978,500 Prepaid expenses 24,800 24,800 Plant & equipment 2,604,700 1,948,400 Accumulated depreciation (1,003,600) (743,000) $3,363,000 $2,785,500 Liabilities and Stockholders’ Equity Accounts payable $49,800 $74,700 Accrued expenses 168,900 200,700 Bonds payable 452,100 189,100 Capital stock 2,108,600 1,782,200 Retained earnings 583,600...
Presented below is the comparative balance sheet for Windsor Company. Windsor Company Comparative Balance Sheet As...
Presented below is the comparative balance sheet for Windsor Company. Windsor Company Comparative Balance Sheet As of December 31, 2021 and 2020 December 31 2021 2022 Assets Cash $178,300 $276,000 Accounts receivable (net) 219,900 154,300 Short-term investments 269,400 149,700 Inventories 1,069,600 982,200 Prepaid expenses 24,900 24,900 Plant & equipment 2,604,600 1,968,800 Accumulated depreciation (990,000) (752,100) $3,376,700 $2,803,800 Liabilities and Stockholders’ Equity Accounts payable $49,900 $74,700 Accrued expenses 170,100 198,600 Bonds payable 446,600 188,900 Capital stock 2,109,800 1,777,900 Retained earnings 600,300...
Carriveau Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets:...
Carriveau Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 41 $ 30 Accounts receivable 38 26 Inventory 51 65 Total current assets 130 121 Property, plant, and equipment 772 551 Less accumulated depreciation 283 262 Net property, plant, and equipment 489 289 Total assets $ 619 $ 410 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 56 $ 71 Accrued liabilities 21 18 Income taxes...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT