The following are comparative balance sheets and an income statement for Remington Company Remington Company Balance...

Transcribed Image Text:

The following are comparative balance sheets and an income statement for Remington Company Remington Company Balance Sheets Cash Accounts receivable: Inventory Prepaid Expenses Land Buildings Accumulated Depreciation Buildings) Equipment Accumulated Depreciation Equipment Total assets Liabilities and, shareholders equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Totals Remington Company as of Deceeber 31 2021 2020 69,000 27,000 68,000 26,000 54,000 0 4,000 45,000 200,000 (21,000) 193,000 (28,000) 6,000 70,000 200,000 (11,000)) 68,000 (10,000) 386,000 Income Statement For the Year Ended December 31, 2021 Revenues Cost of goods sold) Operating expenses Interest expense Loss on sale of equipment Income from operations Income tax expense Net Incone 569,000 33,000 $ 40,000 110,000 150,000 220,000 60,000 206,000 136,000 $ 569,000 386,000 $890,000 465,000 221,000 12,000 2,000 700.000 190,000 65,000 $125,000 Additional information Bonds were redeemed at their book value for cash Interest Expense of $12,000 was paid in cash Cash Dividends of $55.000 were declared and paid Land was sold at it's book value for cash Required: Prepare a statement of cash flows for 2021 using the direct method. (Amounts to be deducted should be indicated with a minus sign) Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and liabilities: Required: Prepare a statement of cash flows for 2021 using the direct method. (Amounts to be deducted should be indicated with sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities The following are comparative balance sheets and an income statement for Remington Company Remington Company Balance Sheets Cash Accounts receivable: Inventory Prepaid Expenses Land Buildings Accumulated Depreciation Buildings) Equipment Accumulated Depreciation Equipment Total assets Liabilities and, shareholders equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Totals Remington Company as of Deceeber 31 2021 2020 69,000 27,000 68,000 26,000 54,000 0 4,000 45,000 200,000 (21,000) 193,000 (28,000) 6,000 70,000 200,000 (11,000)) 68,000 (10,000) 386,000 Income Statement For the Year Ended December 31, 2021 Revenues Cost of goods sold) Operating expenses Interest expense Loss on sale of equipment Income from operations Income tax expense Net Incone 569,000 33,000 $ 40,000 110,000 150,000 220,000 60,000 206,000 136,000 $ 569,000 386,000 $890,000 465,000 221,000 12,000 2,000 700.000 190,000 65,000 $125,000 Additional information Bonds were redeemed at their book value for cash Interest Expense of $12,000 was paid in cash Cash Dividends of $55.000 were declared and paid Land was sold at it's book value for cash Required: Prepare a statement of cash flows for 2021 using the direct method. (Amounts to be deducted should be indicated with a minus sign) Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and liabilities: Required: Prepare a statement of cash flows for 2021 using the direct method. (Amounts to be deducted should be indicated with sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities