Chapter 13

1. The following financial statement data is available for theScottsdale Company for Dec. 31, 2019. (30 pts)
   
   Comparative Balance Sheet Data
   
                                                                  2019                 2018
   Cash                                                   $ 39,835        $    4,000
   AccountsReceivable                             17,500            12,950
   DividendsReceivable                             1,000                    0
   Inventory                                              42,000            35,000
   Prepaidrent                                             3,000            12,000
   Prepaidinsurance                                    2,100                 900
   Officesupplies                                        1,000                 750
   Long-terminvestments                         20,000            30,000
   Land                                                   125,000        175,000
   Building                                             350,000        350,000
   Accumulated depreciation, Building(105,000)        (87,500)
   Equipment                                          525,000        400,000
   Accumulated depreciation, Equipment(130,000)      (112,000)
   Patent                                                    45,000            50,000
              Totalassets                            $ 936,435       $ 871,100
   
   Accountspayable                               $    26,000      $   30,000
   Income taxespayable                                5,000             4,000
   Wagespayable                                          5,000             3,000
   Short-term notespayable                        10,000           10,000
   Dividendspayable                                    1,500                  0
   UnearnedIncome                                         500             2,000
   Accrued Liabilities                                  5,303           10,853
   Long-term notespayable                        60,000           70,000
   Bondspayable                                      415,000         415,000
   Common stock ($10par)                       290,000         220,000
   Paid-in capital in excess ofpar               46,410           17,500
   Retainedearnings                                   106,722           88,747
   TreasuryStock                                      (35,000)                   0      
              Total liabilities and equity      $936,435       $ 871,100
   
   
   
   
   
   
   
   
   
   Income Statement
   
   Salesrevenue                                                                         $1,160,000
   Cost of goodssold                                                                 (    748,000)
   Grossprofit                                                                                 412,000
   Operatingexpenses                                                                (    276,400)
   Income fromoperations                                                              135,600
   Other revenues/expense
   Gain on sale ofland                                        8,000
   Gain on sale of long-terminvestment            4,000
   Dividendrevenue                                            2,400
   Interestexpense                                           (51,750)          (     37,350)
   Income beforetaxes                                                                     98,250
   Income taxexpense                                                               (     39,400)
   Netincome                                                                                   58,850
   
   Instructions:

• Prepare a statement of cash flows in proper form for 2019 usingthe Indirect method. Then, redo the OperatingSection only using the Direct method.