Questions
The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$822,600

$700,100

$122,500

Accounts receivable

1,139,300

1,157,900

(18,600

)

Inventory

1,835,600

1,726,700

108,900

Property, plant, and equipment

3,276,300

2,980,900

295,400

Accumulated depreciation

(1,165,600

)

(1,047,400

)

(118,200

)

Investment in Myers Co.

312,200

272,500

39,700

Loan receivable

251,900

251,900

   Total assets

$6,472,300

$5,790,700

$681,600

Accounts payable

$1,016,000

$949,400

$66,600

Income taxes payable

30,200

49,700

(19,500

)

Dividends payable

79,200

99,100

(19,900

)

Lease liabililty

355,000

355,000

Common stock, $1 par

500,000

500,000

Paid-in capital in excess of par—common stock

1,501,300

1,501,300

Retained earnings

2,990,600

2,691,200

299,400

   Total liabilities and stockholders’ equity

$6,472,300

$5,790,700

$681,600


Additional information:

1. On December 31, 2019, Flounder acquired 25% of Myers Co.’s common stock for $272,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,090,000. Myers reported income of $158,800 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Flounder loaned $255,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $3,600, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Flounder sold equipment costing $59,600, with a carrying amount of $37,800, for $39,900 cash.
4. On December 31, 2020, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $355,000, which equals the fair value of the building. Flounder made the first rental payment of $60,100 when due on January 2, 2021.
5. Net income for 2020 was $378,600.
6. Flounder declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

December 15, 2020 December 15, 2019

Paid

February 28, 2021 February 28, 2020

Amount

$79,200 $99,100


Prepare a statement of cash flows for Flounder Corp. 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).)

In: Accounting

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$807,900

$696,100

$111,800

Accounts receivable

1,130,100

1,166,300

(36,200

)

Inventory

1,850,400

1,707,300

143,100

Property, plant, and equipment

3,324,100

2,995,100

329,000

Accumulated depreciation

(1,163,100

)

(1,032,700

)

(130,400

)

Investment in Myers Co.

308,700

277,600

31,100

Loan receivable

250,800

250,800

   Total assets

$6,508,900

$5,809,700

$699,200

Accounts payable

$1,019,400

$949,200

$70,200

Income taxes payable

30,100

50,300

(20,200

)

Dividends payable

79,800

99,100

(19,300

)

Lease liabililty

389,500

389,500

Common stock, $1 par

500,000

500,000

Paid-in capital in excess of par—common stock

1,499,000

1,499,000

Retained earnings

2,991,100

2,712,100

279,000

   Total liabilities and stockholders’ equity

$6,508,900

$5,809,700

$699,200


Additional information:

1. On December 31, 2019, Waterway acquired 25% of Myers Co.’s common stock for $277,600. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,110,400. Myers reported income of $124,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Waterway loaned $289,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $38,400, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Waterway sold equipment costing $60,500, with a carrying amount of $38,400, for $39,800 cash.
4. On December 31, 2020, Waterway entered into a capital lease for an office building. The present value of the annual rental payments is $389,500, which equals the fair value of the building. Waterway made the first rental payment of $60,100 when due on January 2, 2021.
5. Net income for 2020 was $358,800.
6. Waterway declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

December 15, 2020 December 15, 2019

Paid

February 28, 2021 February 28, 2020

Amount

$79,800 $99,100


Prepare a statement of cash flows for Waterway Corp. 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).)

WATERWAY CORP.
Statement of Cash Flows

In: Accounting

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