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    This document provides the balance sheet and income statement for Oceanami for the years ending December 31, 2021 and 2020. It also provides additional financial information for 2021, including cash dividends paid, the sale of land, acquisition of equipment through a note payable, and purchase of additional long-term investments. The required task is to prepare Oceanami's statement of cash flows for 2021 using the indirect method based on the information provided.

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    TT10 Question

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    37 views1 page
    This document provides the balance sheet and income statement for Oceanami for the years ending December 31, 2021 and 2020. It also provides additional financial information for 2021, including cash dividends paid, the sale of land, acquisition of equipment through a note payable, and purchase of additional long-term investments. The required task is to prepare Oceanami's statement of cash flows for 2021 using the indirect method based on the information provided.

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    This document provides the balance sheet and income statement for Oceanami for the years ending December 31, 2021 and 2020. It also provides additional financial information for 2021, including cash dividends paid, the sale of land, acquisition of equipment through a note payable, and purchase of additional long-term investments. The required task is to prepare Oceanami's statement of cash flows for 2021 using the indirect method based on the information provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    37 views1 page

    TT10 Question

    Uploaded by

    Uyển Nhi Trần
    This document provides the balance sheet and income statement for Oceanami for the years ending December 31, 2021 and 2020. It also provides additional financial information for 2021, including cash dividends paid, the sale of land, acquisition of equipment through a note payable, and purchase of additional long-term investments. The required task is to prepare Oceanami's statement of cash flows for 2021 using the indirect method based on the information provided.

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    ACC201 -Principles of Accounting

    TUTORIAL TEST 10
    The Balance Sheet and Income Statement for Oceanami are shown below:

    Comparative Balance Sheet


    December 31
    Assets 2021 2020
    Cash $182,000 $187,000
    Accounts receivable 83,000 95,000
    Inventories 121,000 138,000
    Prepaid rent 7,000 5,000
    Long term investment 195,000 100,000
    Land 230,000 260,000
    Equipment 350,000 225,000
    Accumulated depreciation, equipment (138,000) (100,000)
    Totul assets $985,000 $910.000

    Liabilities and Stockholders' Equity


    Accounts payable $40,000 $58,000
    Interest payable 1,000 2,000
    Income tax payable 12,000 10,000
    Notes payable 285,000 205,000
    Common stock 350,000 350,000
    Retained earnings 297,000 285,000
    Total liabilities and stockholders' equity $985,000 $910,000

    Income Statement
    For the Year Ended December 31, 2021
    Revenues (including gains) $2,804,000
    Cost of goods sold $1,900,000
    Depreciation expense 38,000
    Interest expense 16,000
    Income tax expense 63,000
    Operating expenses 575,000 2,592,000
    Net income $212,000

    The following additional information relates to 2021:


    a) Dividends were declared and paid in cash.
    b) Sold Land for $34,000, originally cost $30,000.
    c) Acquiring an equipment cost $80,000 by issuing a three-year notes.
    d) Purchase additional long-term investment for $95,000.

    Required:
    Prepare the statement of cash flows for Oceanami Company for 2021 using the indirect
    method.

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