Cola Company reported the following on its 2020 income statement. Using the income statement and the...
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Cola Company reported the following on its 2020 income statement. Using the income statement and the balance sheet given below, prepare the statement of cash flows using the indirect method. For simplicity, ignore the required supplementary disclosures for cash flows associated with interest paid and received, dividends paid and received and income taxes as well as any non-cash disclosures that may have occurred in the current year. Be sure to include the two subheadings in the operating activities section regarding the adjustments to net income for non-cash items and the cash in (out) from the working capital accounts. Please make sure your final answer(s) are accurate to 2 decimal places. Analysis of accounts: a. Retired bonds, paid $5,000 cash. b. Sold investments in bonds in Classic Coverings common shares for $8.500 cash c. Purchased equipment, $16.500 cash. d. Sold furniture, and settled in cash. e. Purchased additional highly liquid trading investment, $8,500 cash. Note: This company's trading investments are not subject to a significant amount of risk and are considered a cash equivalent. f. Paid cash dividends. g. Retired common shares, 3,500 shares at $5 cash per share h. Changes in other balance sheet accounts resulted from usual transactions and events Cola Company Income Statement For the year ended December 31, 2020 Sales Operating expenses Cost of goods sold Depreciation expense Interest expense. Amortization expense Other operating expenses Other revenues and expenses Gain on sale of investments in bonds..... Net income As of December 31, 2020 Cash Cola Company Balance Sheet Investments, trading, FVNI, Accounts receivable, net Prepaid insurance Inventory Investments in bonds, amortized cost. Property, plant, equipment, net, Copyright, net Total assets Accounts payable Salaries payable Short-term notes payable, Unearned revenue $535,000 321,000 18,000 7,410 10,000 101,000 457 410 7.000 584.590 2020 2019 $63,000 $44.500 32,000 23,500 54,000 69,000 28,000 28,000 182,500 164 500 68,000 69 500 150,000 161.500 63,500 73,500 $641,000 $634,000 $94.000 $76.000 57,500 62.500 130,000 123.000 33,500 21,500 118,500 123,500 Bonds payable Common shares 40,000 57,500 Retained earnings, 167,500 170,000 Total liabilities and shareholders' equity $641.000 $634,000 X+4 **** **** Cola Company Statement of Cash Flows For the year ended December 31, 2020 X X+44 X+++ X444 X 圈圈 X X X x+++ Cola Company reported the following on its 2020 income statement. Using the income statement and the balance sheet given below, prepare the statement of cash flows using the indirect method. For simplicity, ignore the required supplementary disclosures for cash flows associated with interest paid and received, dividends paid and received and income taxes as well as any non-cash disclosures that may have occurred in the current year. Be sure to include the two subheadings in the operating activities section regarding the adjustments to net income for non-cash items and the cash in (out) from the working capital accounts. Please make sure your final answer(s) are accurate to 2 decimal places. Analysis of accounts: a. Retired bonds, paid $5,000 cash. b. Sold investments in bonds in Classic Coverings common shares for $8.500 cash c. Purchased equipment, $16.500 cash. d. Sold furniture, and settled in cash. e. Purchased additional highly liquid trading investment, $8,500 cash. Note: This company's trading investments are not subject to a significant amount of risk and are considered a cash equivalent. f. Paid cash dividends. g. Retired common shares, 3,500 shares at $5 cash per share h. Changes in other balance sheet accounts resulted from usual transactions and events Cola Company Income Statement For the year ended December 31, 2020 Sales Operating expenses Cost of goods sold Depreciation expense Interest expense. Amortization expense Other operating expenses Other revenues and expenses Gain on sale of investments in bonds..... Net income As of December 31, 2020 Cash Cola Company Balance Sheet Investments, trading, FVNI, Accounts receivable, net Prepaid insurance Inventory Investments in bonds, amortized cost. Property, plant, equipment, net, Copyright, net Total assets Accounts payable Salaries payable Short-term notes payable, Unearned revenue $535,000 321,000 18,000 7,410 10,000 101,000 457 410 7.000 584.590 2020 2019 $63,000 $44.500 32,000 23,500 54,000 69,000 28,000 28,000 182,500 164 500 68,000 69 500 150,000 161.500 63,500 73,500 $641,000 $634,000 $94.000 $76.000 57,500 62.500 130,000 123.000 33,500 21,500 118,500 123,500 Bonds payable Common shares 40,000 57,500 Retained earnings, 167,500 170,000 Total liabilities and shareholders' equity $641.000 $634,000 X+4 **** **** Cola Company Statement of Cash Flows For the year ended December 31, 2020 X X+44 X+++ X444 X 圈圈 X X X x+++
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CALCULATIONS Operating Activities Net Income 84590 Adjustments for NonCash Items Depreciation Expens... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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