SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2
ID: 2394531 • Letter: S
Question
SWIFTY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
$1,830
$1,140
1,720
1,280
1,610
1,900
1,870
1,690
(1,210)
(1,190)
1,270
1,410
$7,090
$6,230
$1,230
$910
200
250
1,410
1,540
1,880
1,710
2,370
1,820
$7,090
$6,230
SWIFTY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
$6,880
4,680
2,200
930
1,270
80
1,350
540
260
$550
Condensed financial data of Swifty Company for 2017 and 2016 are presented below.SWIFTY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
Cash$1,830
$1,140
Receivables1,720
1,280
Inventory1,610
1,900
Plant assets1,870
1,690
Accumulated depreciation(1,210)
(1,190)
Long-term investments (held-to-maturity)1,270
1,410
$7,090
$6,230
Accounts payable$1,230
$910
Accrued liabilities200
250
Bonds payable1,410
1,540
Common stock1,880
1,710
Retained earnings2,370
1,820
$7,090
$6,230
SWIFTY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
$6,880
Cost of goods sold4,680
Gross margin2,200
Selling and administrative expenses930
Income from operations1,270
Other revenues and gains Gain on sale of investments80
Income before tax1,350
Income tax expense540
Net income 810 Cash dividends260
Income retained in business$550
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.
Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Explanation / Answer
Statement of Cash flows. Cash flows from Operating activities: Cash receivevd from Accounts receivable(6880+1280-1720) 6440 Cash paid for inventory (4680+1610-1900+910-1230-20) -4050 Selling and admin expense paid (930+250-200) -980 Income tax paid -540 Net cash provided from operating activities 870 Cash flows from Investing activities: Sale of investment 220 Purchase of equipment -110 Net cash provided from Investing activities 110 Cash flows from Financing activities: Repayment of Bonds -130 Issue of common Stock 100 Dividend paid -260 Net cash used in financing activities -290 Net increase in Cash 690 Beginning balance of cash 1140 Ending balance of cash 1830
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