Condensed financial data of Whispering Company for 2020 and 2019 are presented below. WHISPERING COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,130 Receivables 1,770 1,290 Inventory 1,620 1,920 Plant assets 1,940 1,680 Accumulated depreciation (1,190 ) (1,170 ) Long-term investments (held-to-maturity) 1,300 1,410 $7,270 $6,260 Accounts payable $1,220 $910 Accrued liabilities 210 260 Bonds payable 1,420 1,530 Common stock 1,890 1,710 Retained earnings 2,530 1,850 $7,270 $6,260 WHISPERING COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,100 Cost of goods sold 4,760 Gross margin 2,340 Selling and administrative expenses 930 Income from operations 1,410 Other revenues and gains Gain on sale of investments 80 Income before tax 1,490 Income tax expense 550 Net income 940 Cash dividends 260 Income retained in business $680 Additional information: During the year, $80 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 fina
Condensed financial data of Whispering Company for 2020 and 2019 are presented below. WHISPERING COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,130 Receivables 1,770 1,290 Inventory 1,620 1,920 Plant assets 1,940 1,680 Accumulated depreciation (1,190 ) (1,170 ) Long-term investments (held-to-maturity) 1,300 1,410 $7,270 $6,260 Accounts payable $1,220 $910 Accrued liabilities 210 260 Bonds payable 1,420 1,530 Common stock 1,890 1,710 Retained earnings 2,530 1,850 $7,270 $6,260 WHISPERING COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,100 Cost of goods sold 4,760 Gross margin 2,340 Selling and administrative expenses 930 Income from operations 1,410 Other revenues and gains Gain on sale of investments 80 Income before tax 1,490 Income tax expense 550 Net income 940 Cash dividends 260 Income retained in business $680 Additional information: During the year, $80 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 fina
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
Related questions
Question
Condensed financial data of Whispering Company for 2020 and 2019 are presented below.
WHISPERING COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash
|
$1,830
|
$1,130
|
||||
Receivables
|
1,770
|
1,290
|
||||
Inventory
|
1,620
|
1,920
|
||||
Plant assets
|
1,940
|
1,680
|
||||
|
(1,190
|
)
|
(1,170
|
)
|
||
Long-term investments (held-to-maturity)
|
1,300
|
1,410
|
||||
$7,270
|
$6,260
|
|||||
Accounts payable
|
$1,220
|
$910
|
||||
Accrued liabilities
|
210
|
260
|
||||
Bonds payable
|
1,420
|
1,530
|
||||
Common stock
|
1,890
|
1,710
|
||||
|
2,530
|
1,850
|
||||
$7,270
|
$6,260
|
WHISPERING COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
---|---|---|
Sales revenue
|
$7,100
|
|
Cost of goods sold
|
4,760
|
|
Gross margin
|
2,340
|
|
Selling and administrative expenses
|
930
|
|
Income from operations
|
1,410
|
|
Other revenues and gains
|
||
Gain on sale of investments
|
80
|
|
Income before tax
|
1,490
|
|
Income tax expense
|
550
|
|
Net income
|
940 | |
Cash dividends
|
260
|
|
Income retained in business
|
$680
|
Additional information:
During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning