Kate Petusky prepared Addison Controls’ balance sheet and income statement for 2020. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison’s president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made:

• Equipment with an original cost of $35,000 was sold for $20,300. The book value of the equipment was $19,400.
• On June 1, 2020, the company purchased new equipment for cash at a cost of $17,500.
• At the end of the year the company issued bonds payable for $10,000 cash. The bonds will mature on December 31, 2024.
• The company paid $23,200 in cash dividends for the year.

Required

Using the indirect method, prepare Addison Controls’ statement of cash flows for 2020.

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Addison Controls Income Statement For the Year Ended December 31, 2020 Sales revenue $127,900 Cost of goods sold 69,800 Gross margin Selling expense Administrative expense Salaries expense 58,100 $13,000 8,000 20,000 Depreciation expense 1,900 Interest expense 4,000 46,900 Income before gain and taxes Gain on sale of land 11,200 900 Income tax expense 800 Net income $ 11,300 Addison Controls Comparative Balance Sheets As of December 31 2020 2019 Cash $ 6,200 $ 4,300 Accounts receivable, net 5,200 5,500 Inventory 30,000 34,200 Total current assets 41,400 44,000 Property, plant, & equipment, net 211,500 215,300 Total Assets $252,900 $259,300 2020 2019 $ 1,700 $ 5,900 2,200 Accounts payable Accrued expenses Taxes payable Bonds payable 2,000 2,500 2,600 60,000 50,000 Total liabilities 66,200 60,700 Common stock 125,000 125,000 Retained earnings 61,700 73,600 Total stockholders' equity 186,700 198,600 Total liabilities & stockholders' equity $252,900 $259,300