70.2K

Verified Solution

Link Copied!

Question 22 of 24 Following is the comparative statement of financial position and income statement for Conc Concord Corporation Statement of Financial Position As at December 31 Assets 2020 2019 Cash 600,550 300,300 Accounts receivable 149,750 175,500 Inventory 751,950 500,950 Prepaid expenses 25,200 30,300 Long term investments 350,600 250,600 Equipment 1,875,700 1,800,700 Less: Accumulated depreciation (149,000) (80,000) 3,604,750 2,978,350 Liabilities and Shareholders' Equity Liabilities and Shareholders' Equity Accounts payable 225,500 200,600 Income tax payable 24,550 30,300 Bonds payable 101,300 250,300 Common shares 1,401,500 1,200,500 Retained earnings 1,851,900 1.296,650 3,604,750 2,978,350 Concord Corporation Income Statement For the year ended December 31, 2020 Sales revenue $2,090,000 Cost of goods sold 880,000 Gross profit 1,210,000 Operating expenses 400,000 Income from operations 810,000 Interest expense 30,000 Gain on disposal of equipment 20,250 Income before income tax 800,250 Income tax expense 120,000 Net income $680,250 Depreciation expense of $113,000 is included in the operating expenses. Prepare the operating activities section of the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a -sign eg. -15,000 or in parenthesis eg. (15,0001.) Concord Corporation Partial Statement of Cash Flows $ > $

Answer & Explanation Solved by verified expert

See Answer