CONCORD INC. Statement of Cash Flows Adjustments to reconcile net income to > < $ LA LA
CONCORD INC. Statement of Cash Flows Adjustments to reconcile net income to > < $ LA LA
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.14E
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Question
Condensed financial data of Concord Inc. follow.
CONCORD INC.
Comparative Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
Assets
|
2022
|
2021
|
||||
Cash |
$80,500
|
$48,700
|
||||
Accounts receivable |
87,900
|
38,600
|
||||
Inventory |
111,900
|
102,100
|
||||
Prepaid expenses |
29,400
|
27,900
|
||||
Long-term investments |
139,800
|
113,700
|
||||
Plant assets |
284,200
|
241,900
|
||||
(47,700)
|
(49,100)
|
|||||
Total |
$686,000
|
$523,800
|
||||
Liabilities and
|
||||||
Accounts payable |
$106,000
|
$63,700
|
||||
Accrued expenses payable |
16,500
|
21,200
|
||||
Bonds payable |
117,100
|
149,500
|
||||
Common stock |
219,000
|
175,100
|
||||
Retained earnings |
227,400
|
114,300
|
||||
Total |
$686,000
|
$523,800
|
CONCORD INC.
Income Statement For the Year Ended December 31, 2022 |
||||
---|---|---|---|---|
Sales revenue | $382,500 | |||
Less: | ||||
Cost of goods sold |
$135,600
|
|||
Operating expenses, excluding depreciation |
12,500
|
|||
Depreciation expense |
48,100
|
|||
Income tax expense |
27,400
|
|||
Interest expense |
4,800
|
|||
Loss on disposal of plant assets |
7,100
|
235,500 | ||
Net income |
$147,000
|
Additional information:
1. | New plant assets costing $100,200 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $57,900 and accumulated depreciation of $49,500 were sold for $1,300 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $33,900 was declared and paid during the year. | |
5. | Common stock was issued at par for cash. | |
6. | There were no significant noncash transactions. |
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