90.2K

Verified Solution

Link Copied!

Cash flow using the direct method please

Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,170 Receivables 1,780 1,310 Inventory 1,580 1,900 Plant assets 1,900 1,720 Accumulated depreciation (1,180 ) (1,140) Long-term investments (held-to-maturity) 1,310 1,420 $7,180 $6,380 Accounts payable $1,220 $880 Accrued liabilities 210 240 Bonds payable 1,380 1,550 Common stock 1,930 1,660 Retained earnings 2,440 2,050 $7,180 $6,380 INCOME TATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,690 Cost of goods sold 4,650 Gross margin 2,040 Selling and administrative expenses 930 Income from operations 1,110 Other revenues and gains Gain on sale of investments 90 Income before tax 1,200 Income tax expense 550 Net income 650 Cash dividends 260 Income retained in business $390 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either g-sign eg.-15.000 or in parenthesis eg. (15.000).) SWIFTY COMPANY Statement of Cash Flows V For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Sale of Investments $ $ Net Cash Provided by Operating Activities Cash Flows from Investing Activities Net Cash Provided by Investing Activities Cash Flows from Financing Activities DU! Net Cash Used by Financing Activities $ Net Increase in Cash $

Answer & Explanation Solved by verified expert

See Answer