Prepare a cash flow statement, in good form, using the indicrect method for operating activities. Pillow...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare a cash flow statement, in good form, using the indicrect method for operating activities. Pillow Company's comparative balances sheets for 2019 and 2020 are presented below. Pillow Company Balance Sheets Assets Cash Accounts receivable, net Marketable securities Inventories Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable Accrued wages Long-term bonds (due 7/1/2023) Total liabilities Stockholders' equity: Common stock and APIC Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2020 337,000 420,000 15,000 520,000 2019 246,000 91,000 280,000 140,000 0 15,000 440,000 80,000 650,000 400,000 250,000 1,160,000 1,266,000 (106,000) 20,000 490,000 (180,000) (200,000) 2,922,000 2,432,000 Increase (Decrease) 660,000 500,000 540,000 520,000 260,000 1,460,000 1,380,000 160,000 20,000 360,000 (100,000) 80,000 966,000 760,000 206,000 496,000 292,000 204,000 1,462,000 1,052,000 410,000 2,922,000 2,432,000 490,000 The income statement of Pillow Company for the year ended December 31, 2020 is as follows: Pillow Company Income Statement for the Year Ended December 31, 2020 Sales Gain on sale of marketable securities Gain on extinguishment of debt Total revenue and gains Expenses Cost of goods sold Personnel costs Depreciation Loss on sale of equipment Interest Miscellaneous Total expenses Income before income taxes Income tax expense Net income 1,600,000 2,000 44,000 1,646,000 720,000 386,000 40,000 8,000 32,000 16,000 1,202,000 444,000 200,000 244,000 Other information 1. On Jan 11, 2020, Pillow purchased land for $170,000 cash 2. On Jan 23, 2020, Pillow extinguished long-term bonds with a face value of $100,000 3. On Feb 8, 2020, Pillow issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. 4. Pillow purchased marketable securities for $30,000 on Mar 15, 2020; one-half of the securities were later sold on Dec 3, 2020 5. On June 9, 2020, Pillow issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction 6. On July 1, 2020, Pillow declared and paid a $40,000 cash dividend 7. On Oct 18, 2020, Pillow sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash Prepare a cash flow statement, in good form, using the indicrect method for operating activities. Pillow Company's comparative balances sheets for 2019 and 2020 are presented below. Pillow Company Balance Sheets Assets Cash Accounts receivable, net Marketable securities Inventories Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable Accrued wages Long-term bonds (due 7/1/2023) Total liabilities Stockholders' equity: Common stock and APIC Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2020 337,000 420,000 15,000 520,000 2019 246,000 91,000 280,000 140,000 0 15,000 440,000 80,000 650,000 400,000 250,000 1,160,000 1,266,000 (106,000) 20,000 490,000 (180,000) (200,000) 2,922,000 2,432,000 Increase (Decrease) 660,000 500,000 540,000 520,000 260,000 1,460,000 1,380,000 160,000 20,000 360,000 (100,000) 80,000 966,000 760,000 206,000 496,000 292,000 204,000 1,462,000 1,052,000 410,000 2,922,000 2,432,000 490,000 The income statement of Pillow Company for the year ended December 31, 2020 is as follows: Pillow Company Income Statement for the Year Ended December 31, 2020 Sales Gain on sale of marketable securities Gain on extinguishment of debt Total revenue and gains Expenses Cost of goods sold Personnel costs Depreciation Loss on sale of equipment Interest Miscellaneous Total expenses Income before income taxes Income tax expense Net income 1,600,000 2,000 44,000 1,646,000 720,000 386,000 40,000 8,000 32,000 16,000 1,202,000 444,000 200,000 244,000 Other information 1. On Jan 11, 2020, Pillow purchased land for $170,000 cash 2. On Jan 23, 2020, Pillow extinguished long-term bonds with a face value of $100,000 3. On Feb 8, 2020, Pillow issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. 4. Pillow purchased marketable securities for $30,000 on Mar 15, 2020; one-half of the securities were later sold on Dec 3, 2020 5. On June 9, 2020, Pillow issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction 6. On July 1, 2020, Pillow declared and paid a $40,000 cash dividend 7. On Oct 18, 2020, Pillow sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash
Expert Answer:
Answer rating: 100% (QA)
Pillow Company Statement of Cash Flows For the Year Ended December 31 2020 Operating Activities N... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
The Barden Corporation's comparative balance sheets for 2017 and 2016 are presented below. Barden Corporation Balance Sheets The income statement of Barden Corporation for the year ended December 31,...
-
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. a. Current ratio....
-
The following financial statements were prepared for the management of MNM Ltd. The statements contain some information that will be disclosed in note form in the general purpose financial statements...
-
What type of business and industry is Fourevr Enterprises? What products or services do Fourevr Enterprises deliver?
-
Big Blue Rental Corp. provides rental agent services to apartment building owners. Big Blue Rental Corp.'s preliminary income statement for August 2010, and its August 31, 2010, preliminary balance...
-
The 4-Mg helicopter maneuvers a horizontal turn having a radius of curvature = 400 m. Determine the lift force F L required and the angle of the bank when it is flying horizontally with a constant...
-
The response variable \(Y_{i j}\) in a \(2^{2}\) design can also be expressed as a regression model \[Y_{i j}=\mu+\beta_{1} x_{1}+\beta_{2} x_{2}+\beta_{12} x_{1} x_{2}+\varepsilon_{i j}\] where the...
-
Assume the Federal Interstate Commission began the fiscal year with the following account balances: 1. Congress passed a spending bill providing $12,000,000 to fund the agencys operations for the...
-
1- Describe the error in the following code excerpt. for (int i = 1; i = 10; i++) System.out.println("This is the loop body"); 2- Change the code such that when it runs, the print statement is...
-
WW Development Inc. (WW), a real estate developer, was incorporated in Canada in 1975 by two brothers, Peter and David Wang. In the 1980s and 1990s, WW was quite successful. In early 2002, Peter and...
-
On June 1, 2025, Wildhorse Service Co. was started with an initial investment in the company of $19,750 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2025, and...
-
When a random sample is used to estimate a population mean, the sample mean tends to become a better estimate of the population mean as the sample size increases.
-
Which regions are forecasted to have the highest growth in aviation over the next 20 years?
-
What is a P-value for a hypothesis test?
-
The quality control manager at a manufacturing company claims that the proportion of defective carbon monoxide detectors is less than 0.04. Formulate the null and alternative hypotheses for a...
-
Reid and Benson are in partnership as lecturers and tutors. Interest is to be allowed on capital and on the opening balances on the current accounts at a rate of 5% per annum and Reid is to be given...
-
What are convergence and relative value strategies? Briefly summarize the construction of the trade in the swap-spread example. How does one profit from the trade? What is LTCM's assessment of the...
-
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
-
Selected liability items for Waugh Corporation at December 31, 2017, follow. Prepare the liabilities section of Waugh's balance sheet. Accounts payable Bonds payable, due 2028 Current portion of...
-
The condensed balance sheet of Laporte Corporation reports the following: The market price of the common shares is currently $30 per share. Laporte wants to assess the impact of three possible...
-
The following instalment payment schedule is for an instalment note payable: Instructions (a) Is this a fixed principal or blended payment schedule? (b) What is the interest rate on the note? (c)...
-
If sand from gravel pit 1 is used, then molten glass for producing armored glass has a random impurity content \(X\) which is \(N(60,16)\)-distributed. But if sand from gravel pit 2 is used, then...
-
The total monthly sick leave time of employees of a small company has a normal distribution with mean 100 hours and standard deviation 20 hours. (1) What is the probability that the total monthly...
-
Let \(X\) have a geometric distribution with \[P(X=i)=(1-p) p^{i} ; \quad i=0,1, \ldots ; 0
Study smarter with the SolutionInn App