Question: make sure you put #1 with answer , #2 with answer . in work form please otherwise will be thumbs down . thanks The 2020
make sure you put #1 with answer , #2 with answer . in work form please otherwise will be thumbs down . thanks
The 2020 comparative balance sheet and income statement of Reyes Winery, Inc. follows:
Reyes Winery, Inc.
Comparative Balance Sheet
December 31, 2020 and 2019
Increase
2020 2019 (Decrease)
Current assets:
Cash and cash equivalents $26,400 $15,900 $10,500
Accounts receivable 26,700 25,500 1,200
Inventory 79,800 91,700 (11,900)
Plant assets:
Land 34,600 11,000 23,600
Equipment, net 103,900 89,700 14,200
Total assets $271,400 $233,800 $37,600
Current liabilities:
Accounts payable $35,500 $30,600 $4,900
Accrued liabilities 28,600 30,700 (2,100)
Long-term liabilities:
Notes payable 78,000 101,000 (23,000)
Stockholders Equity:
Common stock 88,800 64,900 23,900
Retained earnings 40,500 6,600 33,900
Total liabilities and stockholder equity $271,400 $233,800 $37,600
Reyes Winery, Inc.
Income Statement
Year Ended December 31, 2020
Revenues:
Sales revenues $436,000
Interest revenue 8,000
Total revenues 444,000
Expenses:
Cost of goods sold $202,200
Salary expense 78,400
Depreciation expense 14,400
Other operating expenses 10,200
Interest expense 21,900
Income tax expense 19,100
Total expenses 346,200
Net income $97,800
Additionally, Reyes Winery, Inc. purchased land of $23,600 by financing 100% with long-term notes payable during 2020. During the year, there were no sales of land or equipment, no additional issuances of notes payable, no retirement of stock, and no treasury stock transactions.
- Prepare the 2020 statement of cash flows, using the indirect method.
- Your thoughts on the financial health of this company?
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