Solve the following points based on the information provided. Obtain the income statement for the year 2020.
Question:
Solve the following points based on the information provided.
- Obtain the income statement for the year 2020.
- Obtain the statement of changes in stockholders' equity for the year 2020.
- Obtain the balance sheet for the year 2020.
- Obtain the cash flow statement using the indirect method for its preparation.
- For cash flow, you will need to include an explanation of why the sign of the accounts is positive or negative.
We present a list of WWW Company accounts for the years 2020 and 2019, which are not ordered.
What is asked is that they correctly integrate the basic financial statements seen in the first part of the course, which are:
- The statement of income for the year 2020
- The statement of Changes in Stockholders' Equity for the year 2020
- The Balance Sheet for the year 2020
2020 | 2019 | |
Intangible assets | $9,459 | $9,336 |
Capital paid in excess | $179,563 | $174,000 |
Social Capital | $246 | $242 |
Sales cost | $528,285 | $543,504 |
Prepaid supplies | $10,743 | $9,107 |
Accounts receivable | $11,594 | $12,541 |
Debts to pay | $40,348 | $34,464 |
Accumulated depreciation and amortization | -$27,000 | -$30,000 |
Short-term bank debt | $10,054 | $15,326 |
Long-term bank debt | $9,886 | $30,028 |
Long-term receivables | $22,101 | $25,011 |
Cash and cash equivalents | $21,230 | $21,424 |
Administration expenses | $32,438 | $26,933 |
Selling Expenses | $50,731 | $50,791 |
Depreciation and amortization expenses | $27,006 | $30,181 |
Interest expenses | $16 | $788 |
Rent income tax | $2,800 | $7,500 |
Taxes to pay | $4,058 | $3,745 |
Taxes to pay long-term | $319 | $9,125 |
Inventories | $5,827 | $5,557 |
Other accounts payable | $13,690 | $10,915 |
Other accounts payable long-term | $33,177 | $32,478 |
Other long-term assets | $8,313 | $6,909 |
Other income | $11,625 | $12,501 |
Plant and equipment properties | $268,446 | $285,416 |
Rent collected in advance | $20,424 | $19,287 |
Rent paid in advance | $231 | $4,957 |
Wages to pay | $4,577 | $5,640 |
Retained earnings | $14,602 | $15,008 |
Net sales | $630,606 | $652,185 |
Prepare a cash flow statement by the indirect method.
The following is a list of accounts from a recent cash flow statement (as of December 31, 2018), prepared by the indirect method of River Co., which are shown in an unordered way and include totals and subtotals.
It asks:
a) Prepare a cash flow statement by the indirect method, based on the format of figure 7 page 781 of the textbook (As shown below)
b) As you can see, there are quantities with a positive sign and others with a negative sign which should not be modified, but they are asked to briefly explain why the sign of each quantity is positive or negative.
Debts to pay | $6,402.00 |
Accrued accounts payable and other current liabilities | $20,682.00 |
Acquisition or purchase of a business | -$5,934.00 |
Amortization | $1,559.00 |
Cash and cash equivalents at the beginning of the year | $9,721.00 |
Cash and cash equivalents at the end of the year | $17,487.00 |
Change in Cash and cash equivalents | $7,766.00 |
Depreciation | $9,746.00 |
Loss on sale of property and equipment | $263.00 |
Cash flow from operating activities | $75,103.00 |
Cash flow used in financing activities | -$41,759.00 |
Cash flow from investing activities | -$25,578.00 |
Net profit | $71,993.00 |
Other financing activities | $944.00 |
Other operating assets | $8,635.00 |
Cash dividend payments | -$26,470.00 |
Long-term liability payments | -$149.00 |
Payments to a revolving line of credit | -$700,749.00 |
Expenses paid in advance | -$2,951.00 |
Long-term debt issuance | $749,349.00 |
Sale of shares | $13,085.00 |
Inventories | -$35,339.00 |
Purchase of plant (factory) and equipment | -$19,844.00 |
Purchase of treasury shares | -$77,769.00 |
Accounts receivable | -$5,887.00 |
Sale of plant (factory) and equipment | $200.00 |
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella