Question

Problem 12-12A Condensed financial data of Swifty Corporation appear below. Swifty Corporation Comparative Balance Sheets December 31 Assets 2019 Cash $91,000 Accounts receivable 89,900 Inventory 121,000 Investments 84,300 Equipment 249,000 Accumulated depreciation equipment (49,200) $586,000 Liabilities and Stockholders' Equity Accounts payable $57,600 Accrued expenses payable 12,500 Bonds payable 102,000 Common stock 250,000 Retained earnings 163,900 $586,000 2018 $47,300 56,300 102,000 87,500 205,000 (39,900) $458,200 $ 48,200 18,600 69,200 191,000 131,200 $458,200

Answer 1

Swiftly Corporation
Worksheet-Statement of cash flows
For the year ended December 31, 2019
		Reconciling Items
Balance Sheet Accounts	Balance 12/31/18	Debit	Credit	Balance 12/31/19
Debits
Cash	$47,300	$43,700		$91,000
Accounts receivable	$56,300	$33,600		$89,900
Inventory	$102,000	$19,000		$121,000
Investments	$87,500		$3,200	$84,300
Equipment	$205,000	$91,600	$47,600	$249,000
Totals	$498,100			$635,200
Credits
Accumulted depreciation-Equipment	$39,900	$58,100	$48,800	$49,200
Accounts payable	$48,200		$9,400	$57,600
Accrued expenses payable	$18,600	$6,100		$12,500
Bonds payable	$69,200		$32,800	$102,000
Common stock	$191,000		$59,000	$250,000
Retained earnings	$131,200	$103,410	$136,110	$163,900
Totals	$498,100			$635,200

_________________________________________________________________________

Statements of cash flow effects
		Reconciling Items
		Debit	Credit
Operating Activities:
Net Income		$136,110
Increase in accounts receivable			$33,600
Increase in inventory			$19,000
Increase in Accounts payable		$9,400
Decrease in accrued expense payable			$6,100
Depreciation expense		$48,800
Gain on sale of equipment			$8,410
Investing Activities:
Sale of investments		$3,200
Sale of equipment		$16,510
Purchase of equipment			$91,600
Financing Activities:
Issuance of common stock		$59,000
Issuance of bonds		$32,800
Payments of dividends			$103,410
Totals		305820	262120
Increase in cash			$43,700
Totals		305820	305820