The comparative balance sheets for Marigold Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale...
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The comparative balance sheets for Marigold Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings December 31 2020 $33,300 12,400 12,000 -0- -0- 45,200 5,000 $107,900 5,000 -0- $3,000 $4,600 2,000 -0- 2,900 31,000 43,000 21,000 2019 $13,000 9,900 8.900 3,000 29,600 $107,900 19,800 6,100 $90,300 4,500 6.100 3.000 5,000 4,100 25,000 33,000 5,000 $90,300 Additional data related to 2020 are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,400. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,700 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,600 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $1,900 and income taxes of $6,500 were paid in cash. 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).) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Sale of Equipment Patent Amortization Gain on Sale of Investments Gain from Flood Damage MARIGOLD CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities SA [ 40 Cash Flows from investing Activities Sale of Equipment Sale of Investments Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Note Payable Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 Supplemental disclosures of cash flow information: TULL LL $ $ $ $ $ II Cash Flows from investing Activities Sale of Equipment Sale of Investments Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Note Payable Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 Supplemental disclosures of cash flow information: TULL LL $ $ $ $ $ II The comparative balance sheets for Marigold Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings December 31 2020 $33,300 12,400 12,000 -0- -0- 45,200 5,000 $107,900 5,000 -0- $3,000 $4,600 2,000 -0- 2,900 31,000 43,000 21,000 2019 $13,000 9,900 8.900 3,000 29,600 $107,900 19,800 6,100 $90,300 4,500 6.100 3.000 5,000 4,100 25,000 33,000 5,000 $90,300 Additional data related to 2020 are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,400. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,700 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,600 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $1,900 and income taxes of $6,500 were paid in cash. 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).) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Sale of Equipment Patent Amortization Gain on Sale of Investments Gain from Flood Damage MARIGOLD CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities SA [ 40 Cash Flows from investing Activities Sale of Equipment Sale of Investments Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Note Payable Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 Supplemental disclosures of cash flow information: TULL LL $ $ $ $ $ II Cash Flows from investing Activities Sale of Equipment Sale of Investments Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Note Payable Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 Supplemental disclosures of cash flow information: TULL LL $ $ $ $ $ II
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Marigold Corporation Cashflow statement For the year ended 31 2020 Particulars Amount Amount Cash flow from Operating Activity Net Income 16000 Adjust... 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
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