The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020:
Fantastic news! We've Found the answer you've been seeking!
Question:
The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020:
Transcribed Image Text:
The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020: NIAKWA INDUSTRIES Statement of Earnings Net sales Cost of sales Gross profit For the Year Ended December 31, 2020 $1,900,000 980,000 920,000 Operating expenses Depreciation expense property, plant and equipment 200,000 Amortization expense patents Other operating expenses Earnings from operating activities 27,000 197,000 496,000 Non-operating activities Interest expense Loss on sale of land Net earnings before income tax Income tax (30%) Net Earnings 160,000 100,000 236,000 70,800 $ 165.200 NIAKWA INDUSTRIES Comparative Statement of Financial Position December 31, 2020 2020 Assets Current Assets 2019 $ 200,000 $ 405,200 180,000 460,000 Cash Accounts Receivable 350,000 320,000 Investments Inventory Total Current Assets 2,336,000 3,381,200 2.090,000 2,960,000 Non-Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Patents, net Total Non-Current Assets Total Assets 880,000 (760,000) 192,000 312,000 $3.693.200 800,000 (560,000) 219,000 459,000 $3.419.000 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Accrued Payables Dividends Payable Income Taxes Payable $ 389,000 160,000 80,000 27,000 656,000 $ 265,000 240,000 80,000 42.000 627,000 Total Current Liabilities Non-Current Liabilities 180,000 900.000 Note Payable (Long-Term) 560,000 Bonds Pavable 400.000 Additional information: 1. Equipment was purchased for $400,000 cash in 2020. 2. Cash dividends of $40,000 were paid in 2020. 3. Land was sold for $220,000 cash in 2020. 4. Changes in the note payable and bonds payable accounts were through cash transactions. 5. Any additional transactions were non-cash transactions and can be ignored for this question. Required: Prepare a complete Statement of Cash Flows for 2020 using the indirect method for the operating section. Ignore supplementary disclosure. The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020: NIAKWA INDUSTRIES Statement of Earnings Net sales Cost of sales Gross profit For the Year Ended December 31, 2020 $1,900,000 980,000 920,000 Operating expenses Depreciation expense property, plant and equipment 200,000 Amortization expense patents Other operating expenses Earnings from operating activities 27,000 197,000 496,000 Non-operating activities Interest expense Loss on sale of land Net earnings before income tax Income tax (30%) Net Earnings 160,000 100,000 236,000 70,800 $ 165.200 NIAKWA INDUSTRIES Comparative Statement of Financial Position December 31, 2020 2020 Assets Current Assets 2019 $ 200,000 $ 405,200 180,000 460,000 Cash Accounts Receivable 350,000 320,000 Investments Inventory Total Current Assets 2,336,000 3,381,200 2.090,000 2,960,000 Non-Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Patents, net Total Non-Current Assets Total Assets 880,000 (760,000) 192,000 312,000 $3.693.200 800,000 (560,000) 219,000 459,000 $3.419.000 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Accrued Payables Dividends Payable Income Taxes Payable $ 389,000 160,000 80,000 27,000 656,000 $ 265,000 240,000 80,000 42.000 627,000 Total Current Liabilities Non-Current Liabilities 180,000 900.000 Note Payable (Long-Term) 560,000 Bonds Pavable 400.000 Additional information: 1. Equipment was purchased for $400,000 cash in 2020. 2. Cash dividends of $40,000 were paid in 2020. 3. Land was sold for $220,000 cash in 2020. 4. Changes in the note payable and bonds payable accounts were through cash transactions. 5. Any additional transactions were non-cash transactions and can be ignored for this question. Required: Prepare a complete Statement of Cash Flows for 2020 using the indirect method for the operating section. Ignore supplementary disclosure.
Expert Answer:
Answer rating: 100% (QA)
Nikawa industries comparative STATEMENT analysis assets 2020 2019 increase decrease current assets c... View the full answer
Posted Date:
Students also viewed these finance questions
-
Comparative statements of financial position for Eddie Murphy Company are presented below. Additional information: 1. Net income for 2011 was $125,000. 2. Cash dividends of $60,000 were declared and...
-
The bookkeeper for Concord Corp. has prepared the following statement of financial position as at July 31, 2017: CONCORD CORP. Statement of Financial Position As at July 31, 2017 Cash $78,000...
-
Comparative statements of financial position for Erisa Magambo A/S are presented on the next page. Additional information: 1. Net income for 2017 was 120,000. 2. Cash dividends of 70,000 were...
-
Torres Investments acquired $160,000 of Murphy Corp., 5% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $60,000 of...
-
Determine the area under the standard normal curve that lies between a. 2.18 and 1.44. b. 2 and 1.5. c. 0.59 and 1.51. d. 1.1 and 4.2.
-
What strategies are Wal-Mart and Lowes using to gain more online customers?
-
For each of the following situations, calculate the \(z\)-statistic \((z)\). a. \(\mathrm{X}^{-}=8.00 ; \mu=5 ; \sigma=6 ; N=16\) b. \(\mathrm{X}^{-}=4.00 ; \mu=2 ; \sigma=8 ; N=25\) c....
-
Two mutually exclusive alternatives are being considered. One of the alternatives must be selected. Using a 15% nominal interest rate compounded continuously, determine which one. Solve by annual...
-
How do advances in digital communication technologies reshape the landscape of interpersonal relationships and social dynamics ?
-
Suppose that the fixed effects model is formulated with an overall constant term and n 1 dummy variables (dropping, say, the last one). Investigate the effect that this supposition has on the set of...
-
Yellow Blaze Candle Shops provides a full line of various types of candles and accessories such as candleholders. Yellow Blaze has 150 shops in shopping malls and strip malls throughout the country....
-
Rather than enhancing the Sorted List ADTs by adding a member function IsThere, you decide to write a client function to do the same task. 1. Write the specifications for this function. 2. Write the...
-
Write a member function Copy of the Stack ADT, assuming that the stack named in the parameter list is copied into self.
-
Indicate whether a stack would be a suitable data structure for each of the following applications. 1. A program to evaluate arithmetic expressions according to the specific order of operators 2. A...
-
Define and implement a counted stack, which inherits from StackType.
-
Implement the class constructor, destructor, and copy constructor for the circular linked list class.
-
Given the following differential equation 5 dy(t) + 6y(t) = u(t) dt The number of state variables for this system
-
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
-
Evaluate the shape factor \(\phi_{B}^{f}\) for strength-limited design in bending of a square box section of outer edge-length \(h=100 \mathrm{~mm}\) and wall thickness \(t=3 \mathrm{~mm}\). Is this...
-
Derive the expression for the shape-efficiency factor \(\phi_{B}^{e}\) for stiffness-limited design for a circular tube with outer radius \(5 t\) and wall thickness \(t\), loaded in bending (Fig....
-
Derive the expression for the shape-efficiency factor \(\phi_{B}^{e}\) for stiffness-limited design for a square box section of wall thickness \(t\), and height and width \(h_{1}=10 t\) bent about...
Study smarter with the SolutionInn App