Guccii Corporations recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020 Assets
Question:
Guccii Corporation’s recent comparative balance sheet and income statement follow:
Balance Sheets, December 31 | 2019 | 2020 |
---|---|---|
Assets | ||
Cash and cash equivalents | $30,000 | $43,000 |
Investments, short-term | 0 | 6,000 |
Accounts receivable, net | 34,000 | 42,000 |
Merchandise inventory | 20,000 | 30,000 |
Investments, long-term | 0 | 20,000 |
Plant assets, net | 120,000 | 118,000 |
Patents | 6,000 | 5,400 |
Other assets | 14,000 | 14,000 |
Total assets | $224,000 | $278,400 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | $24,000 | $44,000 |
Accrued expenses payable | 0 | 17,400 |
Bonds payable | 80,000 | 40,000 |
Common stock, par $10 | 70,000 | 80,000 |
Additional paid-in capital | 0 | 9,000 |
Retained earnings | 50,000 | 88,000 |
Total liabilities and stockholders’ equity | $224,000 | $278,400 |
Income Statement, For Year Ended December 31 | 2020 |
---|---|
Sales revenue | $208,000 |
Cost of goods sold | (110,000) |
Depreciation expense | (16,000) |
Patent amortization | (600) |
Other operating expenses | (35,400) |
Net income | $46,000 |
Additional information for 2020
1. Retired bonds paying $40,000 cash.
2. Bought long-term debt investment in securities, $20,000 cash.
3. Purchased a plant asset, $14,000 cash.
4. Purchased short-term investment in securities (not held in a trading account), $6,000 cash.
5. Declared and paid cash dividends, $8,000.
6. Issued capital stock, 1,000 shares at $19 cash per share
a. Prepare a cash flow worksheet
Comparative Balance Sheets | ||||
---|---|---|---|---|
2019 | Dr. | Cr. | 2020 | |
Cash and cash equivalents | $30,000 | Answer | Answer | Answer |
Investments, short-term | - | Answer | Answer | Answer |
Accounts receivable, net | 34,000 | Answer | Answer | Answer |
Merchandise inventory | 20,000 | Answer | Answer | Answer |
Investments, long-term | - | Answer | Answer | Answer |
Plant assets, net | 120,000 | Answer | Answer | Answer |
Patents | 6,000 | Answer | Answer | Answer |
Other assets | 14,000 | Answer | Answer | Answer |
Total assets | 224,000 | Answer | ||
Accounts payable | 24,000 | Answer | Answer | Answer |
Accrued expenses payable | - | Answer | Answer | Answer |
Bonds payable | 80,000 | Answer | Answer | Answer |
Common stock, no par | 70,000 | Answer | Answer | Answer |
Additional paid-in capital | Answer | Answer | Answer | |
Retained earnings | 50,000 | Answer | Answer | Answer |
Total liabilities and stockholders' equity | $224,000 | Answer | ||
Cash Flows from Operating Activities | ||||
Net income | Answer | Answer | ||
Depreciation expense | Answer | Answer | ||
Amortization of patent | Answer | Answer | ||
Increase in accounts receivable, net | Answer | Answer | ||
Increase in inventory | Answer | Answer | ||
Increase in accounts payable | Answer | Answer | ||
Increase in accrued expenses payable | Answer | Answer | ||
Cash Flows from Investing Activities | ||||
Purchase of short-term investments | Answer | Answer | ||
Purchase of long-term investments | Answer | Answer | ||
Purchase of plant assets | Answer | Answer | ||
Cash Flows from Financing Activities | ||||
Retirement of bonds | Answer | Answer | ||
Issuance of stock | Answer | Answer | ||
Dividend payment | Answer | Answer | ||
Net cash increase | Answer | Answer | ||
Total | Answer | Answer |
Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash.
Cash Flow Reconciliation | Amount |
---|---|
Net cash provided (used) by operating activities | Answer |
Net cash provided (used) by investing activities | Answer |
Net cash provided (used) by financing activities | Answer |
Net change in cash and cash equivalents | Answer |
Cash and cash equivalents, January 1, 2020 | Answer |
Cash and cash equivalents, December 31, 2020 | Answer |
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin