80.2K

Verified Solution

Link Copied!

Please complete Statement of Cash Flows

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ 143 171 70 175 130 800 (235) $ 1,254 $ 130 175 30 170 160 600 (175) 1,090 $ $ $ Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital excess of par Retained earnings 51 2 9 6 0 380 55 5 8 12 40 300 475 400 221 200 110 70 $ 1,254 $1,090 *** $ 700 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue Expenses: Cost of goods sold $ 330 Salaries expense 95 Depreciation expense 60 Interest expense 12 Loss on sale of land 4 Income tax expense 99 Net income 600 $ 100 Additional information from the accounting records: a. Land that originally cost $30,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $40,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $200,000 cash. d. A $40,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $80,000 face value. f. Common stock ($75,000 par) was sold for $96,000. g. Net income was $100,000 and cash dividends of $60,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For income taxes For interest $ 0 Net cash flows from operating activities. Cash flows from investing activities: Purchase of short-term investment Purchase of equipment Sale of land $ 0 Net cash flows from operating activities. Cash flows from investing activities: Purchase of short-term investment Purchase of equipment Sale of land 0 Net cash flows from investing activities Cash flows from financing activities: Sale of bonds payable Sale of common stock Payment of dividends Repayment of notes payable 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0

Answer & Explanation Solved by verified expert

See Answer