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(12 points) Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2019 using
(12 points) Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2019 using the indirect method. Thunder Company - Balance Sheets - At December 31 2019 2018 Assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 80,000 75,000 158,000 6,000 280,000 (80,000) $519,000 $ 65,000 66,000 145,000 9,000 245,000 (76,000) $454,000 Equipment Accumulated depreciation Equipment Total assets Liabilities: Accounts payable Accrued liabilities $ 47,000 15,000 59,000 $121,000 $ 51,000 12,000 79.000 $142,000 Notes payable (long term) Total liabilities Equity: Common stock Paid-in capital in excess of par Retained earnings Total equity Total liabilities and equity 200,000 83,000 115,000 $398,000 $519,000 150,000 62,000 100,000 $312,000 $454,000 Thunder Company - Income Statement - For Year Ended December 31, 2019 Sales $480,000 Cost of goods sold $242,000 Depreciation expense 40,000 Other operating expenses 100,000 Interest expense 5,000 (387,000) Other gains (losses): Gain on sale of equipment 10,000 Income before taxes 103,000 Income taxes expense _26,000 Net income $ 77,000 Additional Information a. A $60,000 note payable is retired at its carrying value in exchange for cash and an additional note was signed. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $80,000 cash. d. Received cash for the sale of equipment. e. Common stock was issued for cash
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