Comparative balance sheet accounts of Shamrock Inc. are presented below. SHAMROCK INC. COMPARATIVE BALANCE SHEET ACCOUNTS...
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Comparative balance sheet accounts of Shamrock Inc. are presented below. SHAMROCK INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $41,600 $34,100 Accounts Receivable 70,900 60,400 Inventory 30,100 23,900 Equity investments 22,400 38,400 Machinery Buildings Land 29,700 18,900 67,000 55,800 7,600 7,600 $269,300 $239,100 Credit Accounts Allowance for Doubtful Accounts $2,200 $1,500 Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable 5,600 2,200 13,600 9,000 34,800 25,000 Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings 3,300 2,600 21,200 31,200 150,000 125,000 38,600 42,600 $269,300 $239,100 Additional data (ignoring taxes): 1. Net income for the year was $42,200. 2. Cash dividends declared and paid during the year were $21,200. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $24,800 were sold during the year for $28,500. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150. Shamrock's 2020 income statement follows (ignoring taxes). Sales revenue $539,700 Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,750 depreciation and $5,192 bad debts) Income from operations 378,700 161,000 121,700 39,300 Other: Gain on sale of investments $3,700 (800 ) Loss on sale of machinery 2,900 Net income $42,200 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities (b) Prepare a statement of cash flows 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).) (b) Prepare a statement of cash flows 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).) SHAMROCK INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to Comparative balance sheet accounts of Shamrock Inc. are presented below. SHAMROCK INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $41,600 $34,100 Accounts Receivable 70,900 60,400 Inventory 30,100 23,900 Equity investments 22,400 38,400 Machinery Buildings Land 29,700 18,900 67,000 55,800 7,600 7,600 $269,300 $239,100 Credit Accounts Allowance for Doubtful Accounts $2,200 $1,500 Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable 5,600 2,200 13,600 9,000 34,800 25,000 Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings 3,300 2,600 21,200 31,200 150,000 125,000 38,600 42,600 $269,300 $239,100 Additional data (ignoring taxes): 1. Net income for the year was $42,200. 2. Cash dividends declared and paid during the year were $21,200. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $24,800 were sold during the year for $28,500. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150. Shamrock's 2020 income statement follows (ignoring taxes). Sales revenue $539,700 Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,750 depreciation and $5,192 bad debts) Income from operations 378,700 161,000 121,700 39,300 Other: Gain on sale of investments $3,700 (800 ) Loss on sale of machinery 2,900 Net income $42,200 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities (b) Prepare a statement of cash flows 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).) (b) Prepare a statement of cash flows 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).) SHAMROCK INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to
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a Net cash flow from operating activities 42550 b SHAMROCK INC Statement of Cash Flows Working notes ... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
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