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2 years ago

Blossom Corporation’s balance sheet at the end of 2019 included the following items.

Business

1 answer:

RoseWind [281]2 years ago

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The preparation of a statement of cash flows and balance sheet for 2020 for Blossom Corporation is as follows:

1. BlossomCorporation Corporation

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2020

<h3>Operating Activities:</h3>

Net Income $55,870

Add Non-Cash Expense:

Loss from sale of equipment 230

Depreciation Expenses 16,540

Amortization Expense 2,500

Adjusted cash $75,140

Changes in working capital:

Increase in current assets (29,000)

Increase in current liabilities 14,770

Cash from operations $60,910

<h3>Investment Activities:</h3>

Sale of equipment $11,770

Building cost (28,770)

Investment in stock (16,000)

Cash from investments ($33,000)

<h3>Financing Activities:</h3>

Bonds payable $51,770

Dividends payment (30,000)

Treasury stock (11,000)

Cash from financing $10,770

Net cash flow $38,680

2. Blossom Corporation

<h3>Balance Sheet at the end of 2020</h3>

Current assets $304,450

Land $31,770

Buildigs $150,540

Equipment $70,000

Accum. depr.-buildings ($37,540)

Accum. depr.-equipment ($12,000)

Long-term stock investment 16,000

Patents 41,770

Amortization of Patents (2,500)

Total assets $562,490

Current liabilities $166,540

Bonds payable $153,540

Common stock $170,770

Retained earnings $71,640

Total liabilities + Equity $562,490

<h3>What are Statements of Cash Flows and Balance Sheets?</h3>

Statements of cash flows and balance sheets are two of the main financial statements prepared periodically by an entity.

The statement of cash flows shows the cash flows from operating, investing, and financial activities.

The balance sheet shows the financial position (assets, liabilities, and equity) of an entity at a point.

<h3>Data and Calculations:</h3>

Blossom Corporation

<h3>Balance Sheet at the end of 2019</h3>

Current assets

(Cash $82,000) $236,770 Current liabilities $151,770

Land 31,770 Bonds payable 101,770

Buildings 121,770 Common stock 181,770

Equipment 91,770 Retained earnings 45,770

Accum. depr.-buildings (31,770 ) Total $481,080

Accum. depr.-equipment (11,000 )

Patents 41,770

Total $481,080

Ending Cash balance = $120,680 ($82,000 + 38,680)

Current assets = $304,450 (236,770 + $29,000 + $38,680)

Land = $31,770

Buildigs = $150,540 ($121,770 + $28,770)

Equipment = $70,000 ($91,770 - $21,770)

Accum. depr.-buildings = $37,540 (31,770 + 5,770)

Accum. depr.-equipment = $12,000 (11,000 - 9,770 + 10,770)

Long-term stock investment 16,000

Patents 41,770

Amortization of Patents (2,500)

Current liabilities $166,540 (151,770 + 14,770)

Bonds payable $153,540 (101,770 + 51,770)

Common stock $170,770 (181,770 - 11,000)

Retained earnings $71,640 (45,770 + $55,870 - 30,000)

Learn about preparing statements of cash flows at brainly.com/question/25645312

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given data

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maximum amount that consumers are willing to pay for the quantity demanded at this price

solution

we get here demand at current market price that is

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so now consumer surplus will be here as

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now we get maximum amount that is

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so maximum amount that consumers are willing to pay for the quantity demanded at this price = $168

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