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Jimmyhighroller Jimmyhighroller
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A month ago
Wil Wheaton, Kirk Enterprises' controller, is preparing the financial statements for 2021 as follows.

Kirk Enterprises
Comparative Balance Sheets
As of December 31
2021 2020
Cash$122,300 $80,500
Accounts receivable, net287,200269,700
Inventory125,00095,000
Total current assets534,500445,200
Property, plant, & equipment, net297,000160,000
Accumulated depreciation 90,00060,000
  Net property, plant, & equipment207,000100,000
Total Assets$741,500 $545,200
Accounts payable$150,000$175,000
Taxes payable17,60020,000
Mortgage payable110,000             0
  Total liabilities277,600195,000
Common stock350,000290,000
Retained earnings113,90060,200
  Total stockholders' equity463,900350,200
Total liabilities & stockholders' equity$741,500 $545,200


Kirk Enterprises
Income Statement
For the Year Ended December 31, 2021
Sales revenue$1,070,000
Cost of goods sold700,000
Operating expenses
  Depreciation expense$  42,000
  Interest expense7,400
  Wages expenses175,000
  Other expenses   16,000   240,400
Income before taxes129,600
Loss on equipment sale3,000
Tax expense     63,400
  Net income$     63,200


He has gathered this additional information:

•On December 31, 2021, Kirk sold a piece of equipment with an original cost of
$25,000 for $10,000 cash. The equipment had a book value of $13,000.
•On February 1, 2021, Kirk issued $60,000 of common stock to raise cash in
anticipation of the purchase of a new building later in the year.
•On February 2, 2021, Kirk took out a ten-year $110,000 long-term loan to provide
the remaining funds needed to purchase the building.
•On May 15, 2021, Kirk paid $162,000 for the new building.
•The company paid a cash dividend of $9,500.

Required:

Using the direct method, prepare Kirk Enterprises' statement of cash flows for 2021.
Textbook 
Managerial Accounting

Managerial Accounting


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juniorpjuniorp
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A month ago
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Kirk Enterprises
Statement of Cash Flows
For the year ended December 31, 2021
Cash flows from operating activities
Collections from customersa$1,052,500
Payments to suppliersb(747,000)
Payments to employeesc(178,000)
Payment for other expensesd(28,400)
Payments for income taxese   (65,800)
    Net cash provided by operating activities33,300
Cash flows from investing activities
Sale of equipment10,000
Purchase of building(162,000)
    Net cash provided by investing activities(152,000)

Cash flows from financing activities
Proceeds from issuing common stock60,000
Proceeds from long-term debt110,000
Payment of cash dividend   (9,500)
    Net cash provided by financing activities  160,500

Change in cash41,800
Cash, beginning balance    80,500
Cash, ending balance$122,300

aCollections from customers: $269,700 + $1,070,000 − $287,200
bPayments to suppliers: $120,000 + ($125,000 − $95,000 + $700,000) − $103,000
cPayments to employees: $30,000 + $175,000 − $27,000
dPayment for other expenses: $25,000 + $16,000 + $7,400 − $20,000
ePayments for income taxes: $20,000 + $63,400 − $17,600

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Jimmyhighroller Author
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A month ago
This helped my grade so much Perfect
Jodias
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Yesterday
Thank you, thank you, thank you!
jmendoza
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2 hours ago
Good timing, thanks!
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