1. The income statement for 2020 included the following items: a. Net income, $3,200. b. Depreciation expense for the year, $73,065. c. Amortization on the bonds payable, $1,007. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash. 3. There were neither purchase nor disposal of long-term investments. The increase in balance of long-term investments was entirely due to the increase in the fair value which has been included in the net income. 4. The company issued bonds payable with a face value of $250,000, receiving cash of $262,079. 5. The cash receipt from the notes payable in 2019 is considered a financing activity because it does not relate to operations.

Requirement Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method

LET'S BIKE COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current Assets: Liabilities \begin{tabular}{|lrrr} \hline Current Liabilities: & & & \\ \hline Accounts Payable & 4,500 & $ & 7,120 \\ Utilities Payable & 1,450 & 2,800 \\ \hline Telephone Payable & 1,990 & 3,200 \\ \hline Wages Payable & 3,230 & 4,230 \\ \hline Notes Payable & - & 120,000 \\ Interest Payable & - & 2,100 \\ Unearned Revenue & 1,920 & 3,645 \\ Long-term Liabilities: & & \\ \hline Mortgage Payable & 270,000 & \\ \hline Bonds Payable & 250,000 & \\ \hline Premium on Bonds Payable & 11,072 & \\ \hline Total Liabilities & 544,162 & 143,095 \\ & & \\ \hline Stockholders' Equity & & \\ \hline Paid-In Capital: & 157,000 & 157,000 \\ \hline Common Stock & 30,020 & 29,520 \\ \hline Retained Earnings & 187,020 & 186,520 \\ \hline Total Stockholders' Equity & 5731,182 & S329,615 \\ \hline Total Liabilities and Stockholders' Equity & & \end{tabular}