The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts receivable Inventories Prepaid rent Total current assets Non-current assets Investment Plant and equipment Less: Accumulated depreciation - Plant and equipment Total non-current assets Total assets Current liabilities Accounts payable Rent payable Income taxes payable Short-term note payable Dividend payable Total current liabilities Helen Limited Balance Sheet As at 31 December Non-current liabilities Long-term bank loan payable Total liabilities Stockholders' equity Common stock and additional paid-in capital Less: Treasury stock 2020 2019 $ $ 1,299,000 1,134,000 355,000 256,000 460,000 400,000 30,000 50,000 2,144,000 1,840,000 400,000 300,000 1,320,000 950,000 500,000 400,000 1,220,000 850,000 3,364,000 2,690,000 260,000 136,000 180,000 50,000 40,000 666,000 296,000 126,000 220,000 20,000 30,000 692,000 700,000 600,000 1,366,000 1,292,000 1,100,000 800,000 80,000 50,000 Retained earnings Total equity Total liabilities and equity Sales revenue Cost of goods sold Gross profit Other income: Gain on sales of plant and equipment Expenses: Rent expense Helen Limited Income Statement For Year Ended 31 December 2020 Impairment loss on plant and equipment Depreciation expenses Interest expense Income tax expense Net income Other information is as follows: (1) Cash dividends were declared during the year. (2) Helen Ltd paid $30,000 for long-term bank loan payable 978,000 648,000 1.998,000 1,398,000 3,364,000 2,690,000 $ 2,500,000 1,400,000 1,100,000 500,000 400,000 10,000 400,000 27,000 10,000 753,000 (3) Helen Ltd declared and distributed 10,000 shares of common stock as stock dividends to stockholders in this year. The par value is $1 per share. The market value is $3 per share. The stock dividend was classified as small stock dividend. (4) Helen Ltd sold plant and equipment in this year. The cost of plant and equipment sold was $600,000. The company received shares of the seller's common stock as part of the payment. The amount of common stock received had been recorded in investment account. The remaining balance for the plant and equipment sold had been received in cash. Helen Ltd did not purchase additional investment nor sell investment in this year. (5) Helen Ltd purchased plant and equipment in this year. 10 percent of the cost of plant and equipment purchased was settled by issuing common stock. 90 percent of the cost of plant and equipment purchased was settled by paying cash. Required: (a) Prepare a statement of cash flows using indirect method for the year ended 2020. Show your calcuations. (30 marks) The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts receivable Inventories Prepaid rent Total current assets Non-current assets Investment Plant and equipment Less: Accumulated depreciation - Plant and equipment Total non-current assets Total assets Current liabilities Accounts payable Rent payable Income taxes payable Short-term note payable Dividend payable Total current liabilities Helen Limited Balance Sheet As at 31 December Non-current liabilities Long-term bank loan payable Total liabilities Stockholders' equity Common stock and additional paid-in capital Less: Treasury stock 2020 2019 $ $ 1,299,000 1,134,000 355,000 256,000 460,000 400,000 30,000 50,000 2,144,000 1,840,000 400,000 300,000 1,320,000 950,000 500,000 400,000 1,220,000 850,000 3,364,000 2,690,000 260,000 136,000 180,000 50,000 40,000 666,000 296,000 126,000 220,000 20,000 30,000 692,000 700,000 600,000 1,366,000 1,292,000 1,100,000 800,000 80,000 50,000 Retained earnings Total equity Total liabilities and equity Sales revenue Cost of goods sold Gross profit Other income: Gain on sales of plant and equipment Expenses: Rent expense Helen Limited Income Statement For Year Ended 31 December 2020 Impairment loss on plant and equipment Depreciation expenses Interest expense Income tax expense Net income Other information is as follows: (1) Cash dividends were declared during the year. (2) Helen Ltd paid $30,000 for long-term bank loan payable 978,000 648,000 1.998,000 1,398,000 3,364,000 2,690,000 $ 2,500,000 1,400,000 1,100,000 500,000 400,000 10,000 400,000 27,000 10,000 753,000 (3) Helen Ltd declared and distributed 10,000 shares of common stock as stock dividends to stockholders in this year. The par value is $1 per share. The market value is $3 per share. The stock dividend was classified as small stock dividend. (4) Helen Ltd sold plant and equipment in this year. The cost of plant and equipment sold was $600,000. The company received shares of the seller's common stock as part of the payment. The amount of common stock received had been recorded in investment account. The remaining balance for the plant and equipment sold had been received in cash. Helen Ltd did not purchase additional investment nor sell investment in this year. (5) Helen Ltd purchased plant and equipment in this year. 10 percent of the cost of plant and equipment purchased was settled by issuing common stock. 90 percent of the cost of plant and equipment purchased was settled by paying cash. Required: (a) Prepare a statement of cash flows using indirect method for the year ended 2020. Show your calcuations. (30 marks)
Expert Answer:
Answer rating: 100% (QA)
Cash flow statement For the year ended 31 December 2020 Cash flow from operating activities Net inco... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these general management questions
-
The balance sheet and income statement for Berthas Bridal Boutique are presented along with some additional information about the accounts. You are to answer the questions that follow concerning cash...
-
ixtures Computer equipment Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. for the first year of operations, but does not understand how to prepare the...
-
The balance sheet and income statement of Eastland Products, Inc., are as follows: Income Statement for Year Ended December 31, 2013 (in Millions of Dollars)...
-
Write a short report in which you assess the impact of one piece of health and safety legislation in an organisation of your choice.
-
Wicks Corporation began operations on January 1, 2010. At the end of 2010, the company reported pretax financial income of $60,000 and taxable income of $57,700, due to two temporary differences. The...
-
A group of six people play the game of "odd person out" to determine who will buy refreshments. Each person flips a fair coin. If there is a person whose outcome is not the same as that of any other...
-
Jennifer Vera, Inc., is the only company with a distribution network for its imported goods. The company does a brisk business with specialty stores such as Neiman Marcus, Saks Fifth Avenue, and...
-
The Mary Ellen Hospice provides services for terminally.ill patients and their families. The hospice provides an accommodation unit for up to six patients and a support service for outpatients, in...
-
Q1) Explain the bullwhip effect with an example. Suggests some methods to minimize the bullwhip effect. Q2) What changes in the supply chain will increase revenue? Q3) What would you do if your...
-
A panel for a political forum is made up of 13 people from three parties, all seated in a row. The panel consists of 1 Democrat, 5 Republicans, and 7 Green Party members. In how many distinct orders...
-
How should Companies holding cryptocurrency classify cryptos in the statement of financial position under U.S. GAAP?
-
What underlying statutory purposes will invalidate a law that treats children of married parents and children of unmarried parents differently? What purpose will sustain differential treatment?
-
The kinetic energy of a rigid body undergoing planar motion consists of two terms. What are they? What does each represent?
-
In 1973, a "revolution in the law of determination of parentage" occurred when the Uniform Law Commissioners of the National Conference of Commissioners on Uniform State Laws ("ULC") promulgated the...
-
What is the difference between explicit and implicit assumptions?
-
.. The mother gave birth to the child (Cheryl) on August 29, 1993. In November, 1993, the [Department of Revenue (department)] filed a complaint in the Probate and Family Court against the father on...
-
Sebastian's 18-year-old child and his child's 17-year-old spouse had $800 of wages from part-time jobs and no other income. They lived with Sebastian all year. Neither is required to file a tax...
-
Consider model (9.18). What is the effect on the model parameter estimates, their standard errors, and the goodness-of-fit statistics when (a) The times at risk are doubled, but the numbers of deaths...
-
At January 1, 2015, Bohemia Nursery Ltd.'s balance sheet reported the following shareholders' equity: Shareholders' Equity Contributed capital: Preferred shares, $0.75, cumulative (3 years in...
-
The partnership of Telliher, Bachra, and Lang has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Thea Telliher, 60 percent,...
-
Lankin Concrete Products Ltd. reported the correction of an error made in the year ended December 31, 2017. An inventory error caused net income of the prior year to be overstated by $50,000....
-
Comment on the dividend yield of Alemouth plc.
-
Comment on the relationship between the net assets per share of Beermouth plc and its share price (or on the relationship of the total of shareholders funds to the market capitalization).
-
What is the level of the FTSE 100 today? What is the average P/E ratio of the top 100 companies? What is their dividend yield and dividend cover? You are given the following information about the...
Study smarter with the SolutionInn App