Question 11

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Flounder Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

FLOUNDER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

12/31/20

12/31/19

Cash

$5,900

$6,900

Accounts receivable

61,400

50,800

Short-term debt investments (available-for-sale)

35,000

17,800

Inventory

40,000

59,400

Prepaid rent

5,000

3,900

Equipment

155,200

129,000

Accumulated depreciationequipment

(35,000

)

(25,000

)

Copyrights

45,600

49,900

Total assets

$313,100

$292,700

Accounts payable

$46,300

$39,800

Income taxes payable

3,900

6,100

Salaries and wages payable

7,900

3,900

Short-term loans payable

8,000

10,100

Long-term loans payable

60,100

68,400

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

56,900

34,400

Total liabilities & stockholders equity

$313,100

$292,700

Question 11

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Current Attempt in Progress

Flounder Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

FLOUNDER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
		12/31/20			12/31/19
Cash		$5,900			$6,900
Accounts receivable		61,400			50,800
Short-term debt investments (available-for-sale)		35,000			17,800
Inventory		40,000			59,400
Prepaid rent		5,000			3,900
Equipment		155,200			129,000
Accumulated depreciationequipment		(35,000	)		(25,000	)
Copyrights		45,600			49,900
Total assets		$313,100			$292,700
Accounts payable		$46,300			$39,800
Income taxes payable		3,900			6,100
Salaries and wages payable		7,900			3,900
Short-term loans payable		8,000			10,100
Long-term loans payable		60,100			68,400
Common stock, $10 par		100,000			100,000
Contributed capital, common stock		30,000			30,000
Retained earnings		56,900			34,400
Total liabilities & stockholders equity		$313,100			$292,700

FLOUNDER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue				$338,600
Cost of goods sold				174,500
Gross profit				164,100
Operating expenses				119,100
Operating income				45,000
Interest expense		$11,400
Gain on sale of equipment		1,900		9,500
Income before tax				35,500
Income tax expense				7,100
Net income				$28,400 1.Dividends in the amount of $5,900 were declared and paid during 2020.2.Depreciation expense and amortization expense are included in operating expenses.3.No unrealized gains or losses have occurred on the investments during the year.4.Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) FLOUNDER INC. Statement of Cash Flows choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 select an opening name for section one Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash