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1) 1 continued) 2) L&B Corporation comparitive Statement of Financial Position and Income Statement follows: L&B Corporation Statement of Financial Position As At December 31
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L&B Corporation comparitive Statement of Financial Position and Income Statement follows: L&B Corporation Statement of Financial Position As At December 31 2019 2018 ASSETS Cash Accounts Receivable Capital Assets Accumulated Depreciation Total Assets $29,500 17,000 138,500 (89,000) $96,000 $30,000 12,000 123,500 (83,500) $82,000 Liabilities and Shareholders' Equity Bonds Payable Dividends Payable Common Shares Contributed surplus Retained Earnings Total Liabilities and Shareholders' Equity $24,500 4,000 11,000 4,500 52,000 $96,000 $23,000 2,500 9,500 1,500 45,500 $82,000 L&B Corporation Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Gain on Sale of Equipment Net Income $77,500 53,500 24,000 16,500 6,500 $14,000 * Additional Information: During 2019, equipment costing 20,000 was sold for cash. During 2019, $10,000 of bonds payable were issued in exchange for capital assets. There was no amortization of bond discount or premium. Required Prepare the 2019 Statement of Cash Flows using the indirect method. The Income Statement for MDB Inc. follows along with additional information: MDB Corporation Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income $500,000 300,000 200,000 140.000 $60,000 Additional Information: Increase in Accounts Receivable Increase in Inventory Decrease in Accounts Payable Increase in Accrued Operating Expenses $10,000 5,000 8,000 6,000 Required 1) Prepare the Operations Activity section for the Statement of Cash Flows for 2019 using the direct method 2) Prepare the Operations Activity section for the Statement of Cash Flows for 2019 using the indirect method 1 continued)
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