Prepare a Statement of Cash flows on the basis of the following data for Gateway & Company for the current year (20XX) and the preceding year end.

Additional Ledger Information:

*Purchased new equipment for $100,000 during the year

*Equipment with a cost basis of $60,000 and accumulated depreciation of $42,000 sold for $10,000

*The only entry to Copyrights was for amortization

*The Common Stock was issued for cash.

*The only entries in the Retained Earnings account were Net Income of $53,000 and cash dividends declared of $10,400.

*Land was purchased by taking out a Mortgage of $40,000 and paying the balance in cash

Cash paid for Interest was $5,000 and cash paid for Income Taxes was $8,000.

Reconstruct T-accounts to determine account changes as necessary based on information given.

Instructions:

Prepare a Statement of Cash Flows (Indirect Method) in proper format Show & Input deductions as NEGATIVE numbers as appropriate with the use of (parens) Use left answer file box to describe item FULLY such as "Decrease in Inventories" or Cash paid for purchase of Land" or "Cash Dividends Paid" or "Decrease in Accts.Payable"

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ateway & Compan BALANCE SHEET As of December 31, 20XX Partuclars ASSETS: Current Assets: Cash and equivalents Accounts Receivable, net Inventories Total Current Assets Current Year Amount Previous Year Amount Ince/Decr Amount S 82,000 S 84,600 S 119,400 S 77,900 S 95,600 S 105,000 S 4,100 S (11.000) S 14,400 S 278,500 S 7,500 S286,000 Property Plant and Equipment Land Equipment Less: Accumulated DepreciationS (186.500) Total Prop,Plant, Equip Other Assets: Copyrights TOTAL ASSETS S 50,000 S 40,000 S 6,200 S 227,300 S 96,200 S 50,000 S 460,000 S 420.000 S (192,700 S 323,500 S 12,000 S 621,500 S 14.000S(2.000) S 519,800 S 101,700 LIABILITIES & STKHOLDER'S Current Liabilities: Accounts Payable Accrued Expenses Payable Cash Dividends Payable Total Current Liabilities Long-Term Liabilities: Mortgage Payable Total Long-Term Liabilities TOTAL LIABILITIES Stockholder's Equity Common Stock, S10 par 50,000 shares auth-27,000 shares shares issued and outstanding Paid in Capital In Excess of Par S81,000 Retained Earnings TOTAL STKHOLDER'S EQUITY TOTAL LIAB. & SE EQUITY S 65,000 S 11.000 S 3,000 S 61,900 S 14.000 S 5,000 S 3,100 S (3,000) S (2,000) S 80,900 S (1,900) S 79,000 S 40,000 S 40,000 S 80,900 S 38,100 S 40,000 S 40,000 S 119,000 2 S 250,000 S 80,000 S 108,900 S 20,000 S 1,000 S 42,600 S 438,900 S 63.600 S519,800 S 101,700 S 270,000 S 151500 S 502,500 S 621,500 5