Blue Inc., a greeting card company that follows ASPE, had the following statements prepared as at...
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Blue Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: BLUE INC. Comparative Statement of Financial Position December 31 2019 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Goodwill Total assets Accounts payable Income tax payable Salaries and wages payable Short-term loans payable 2020 $44,825 58,090 39,880 5,090 165,200 (35,090 ) 22,000 $299,995 $46,200 3,880 8,150 8,090 $25,150 51,130 60,030 4,020 130,090 (25,020 ) 58,000 $303,400 $40,090 6,030 4,150 10,130 Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity 62,000 130,000 41,675 $299,995 77,000 130,000 36,000 303,400 BLUE INC. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on disposal of equipment Income before income tax Income tax expense Net income $11,700 36,000 (2,300 ) $344,180 165,000 179,180 120,000 59,180 45,400 13,780 4,105 $9,675 Additional information: 1. Dividends on common shares in the amount of $4,000 were declared and paid during 2020. Dividends paid are treated as finan Depreciation expense is included in operating expenses, as is salaries and wages expense of $72,000. 2. 3. Equipment with a cost of $34,000 that was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Blue Inc. Statement of Cash Flows (Direct Method) $ > < < < < III $ Blue Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: BLUE INC. Comparative Statement of Financial Position December 31 2019 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Goodwill Total assets Accounts payable Income tax payable Salaries and wages payable Short-term loans payable 2020 $44,825 58,090 39,880 5,090 165,200 (35,090 ) 22,000 $299,995 $46,200 3,880 8,150 8,090 $25,150 51,130 60,030 4,020 130,090 (25,020 ) 58,000 $303,400 $40,090 6,030 4,150 10,130 Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity 62,000 130,000 41,675 $299,995 77,000 130,000 36,000 303,400 BLUE INC. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on disposal of equipment Income before income tax Income tax expense Net income $11,700 36,000 (2,300 ) $344,180 165,000 179,180 120,000 59,180 45,400 13,780 4,105 $9,675 Additional information: 1. Dividends on common shares in the amount of $4,000 were declared and paid during 2020. Dividends paid are treated as finan Depreciation expense is included in operating expenses, as is salaries and wages expense of $72,000. 2. 3. Equipment with a cost of $34,000 that was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Blue Inc. Statement of Cash Flows (Direct Method) $ > < < < < III $
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Blue Inc Statement of Cash Flows Direct Method For the Year Ended December 31 2020 Cash flows from o... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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