Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,150 Receivables 1,780 1,330 Inventory 1,620 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200 ) (1,180 ) Long-term investments (held-to-maturity) 1,310 1,420 $7,230 $6,310 Accounts payable $1,210 $920 Accrued liabilities 210 240 Bonds payable 1,370 1,530 Common stock 1,860 1,670 Retained earnings 2,580 1,950 $7,230 $6,310 WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 940 Income from operations 1,350 Other revenues and gains Gain on sale of investments 80 Income before tax 1,430 Income tax expense 540 Net income 890 Cash dividends 260 Income retained in business $630 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,150 Receivables 1,780 1,330 Inventory 1,620 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200 ) (1,180 ) Long-term investments (held-to-maturity) 1,310 1,420 $7,230 $6,310 Accounts payable $1,210 $920 Accrued liabilities 210 240 Bonds payable 1,370 1,530 Common stock 1,860 1,670 Retained earnings 2,580 1,950 $7,230 $6,310 WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 940 Income from operations 1,350 Other revenues and gains Gain on sale of investments 80 Income before tax 1,430 Income tax expense 540 Net income 890 Cash dividends 260 Income retained in business $630 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 18E: Spreadsheet and Statement The following 2019 information is available for Stewart Company: Partial...
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Condensed financial data of Waterway Company for 2020 and 2019 are presented below.
WATERWAY COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash
|
$1,790
|
$1,150
|
||||
Receivables
|
1,780
|
1,330
|
||||
Inventory
|
1,620
|
1,890
|
||||
Plant assets
|
1,930
|
1,700
|
||||
|
(1,200
|
)
|
(1,180
|
)
|
||
Long-term investments (held-to-maturity)
|
1,310
|
1,420
|
||||
$7,230
|
$6,310
|
|||||
Accounts payable
|
$1,210
|
$920
|
||||
Accrued liabilities
|
210
|
240
|
||||
Bonds payable
|
1,370
|
1,530
|
||||
Common stock
|
1,860
|
1,670
|
||||
Retained earnings
|
2,580
|
1,950
|
||||
$7,230
|
$6,310
|
WATERWAY COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
---|---|---|
Sales revenue
|
$6,970
|
|
Cost of goods sold
|
4,680
|
|
Gross margin
|
2,290
|
|
Selling and administrative expenses
|
940
|
|
Income from operations
|
1,350
|
|
Other revenues and gains
|
||
Gain on sale of investments
|
80
|
|
Income before tax
|
1,430
|
|
Income tax expense
|
540
|
|
Net income
|
890 | |
Cash dividends
|
260
|
|
Income retained in business
|
$630
|
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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