Accounting Assignment | College Homework Help

The following are the financial statements of Cullumber Company. Cullumber Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $36,000 $19,000 Accounts receivable 32,000 18,000 Inventory 29,000 20,000 Equipment 59,000 77,000 Accumulated depreciation-equipment (29,000) $127,000 (23,000) $111,000 Total

Liabilities and Stockholders’ Equity Accounts payable $28,000 $16,000 Income taxes payable 7,000 8,000 Bonds payable 26,000 17,000 32,000 13,000 Common stock Retained earnings 49,000 42.000 Total $127,000 $111,000 Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cost of goods sold 175.000 Gross profit 66.000 Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 175.000 Cost of goods sold Gross profit 66,000 Operating expenses 23.000 Income from operations 43,000 Interest expense 2,000 Income before income taxes 41,000 Income tax expense 7.000 Net income $34.000 Additional data: 1. Dividends declared and paid were $27,000. 2. During the year, equipment was sold for $9,600 cash.

This equipment cost $18,000 originally and had a book value of $9.600 at the time of sale. 3. All depreciation expense, $14,400, is in the operating expenses. 4. All sales and purchases are on account. – Your answer is partially correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Cullumber Company Statement of Cash Flows For the Year Ended December 31, 2020 Cullumber Company Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 32,000 Adjustments to reconcile net income to 172.000 7.700 8.000 2,000 Get Accounting Homework Help today