70.2K
Verified Solution
Link Copied!
A comparative statement of financial position for Sheffield Industries Inc. follows:
| SHEFFIELD INDUSTRIES INC. Statement of Financial Position December 31, 2020 |
| | December 31 |
| Assets | 2020 | | | 2019 | |
| Cash | $22,500 | | | $35,500 | |
| Accounts receivable | 117,000 | | | 55,300 | |
| Inventory | 231,000 | | | 199,000 | |
| Land | 86,000 | | | 130,000 | |
| Equipment | 278,000 | | | 204,000 | |
| Accumulated depreciationequipment | (70,500 | ) | | (42,900 | ) |
| Total | $664,000 | | | $580,900 | |
| | | | | | |
| Liabilities and Shareholders Equity | | | | | |
| Accounts payable | $52,700 | | | $60,200 | |
| Bonds payable | 164,400 | | | 218,400 | |
| Common shares | 234,000 | | | 180,000 | |
| Retained earnings | 212,900 | | | 122,300 | |
| Total | $664,000 | | | $580,900 | |
Additional information:
| 1. | | Net income for the fiscal year ending December 31, 2020, was $142,000. |
| 2. | | Cash dividends of $51,400 were declared and paid. Dividends paid are treated as financing activities. |
| 3. | | Bonds payable amounting to $54,000 were retired through issuance of common shares. |
| 4. | | Land was sold at a gain of $3,000. |
| 5. | | No equipment was sold during the year. |
(a) Prepare a statement of cash flows using the indirect method.
Answer & Explanation
Solved by verified expert
