Question
2. The comparative balance sheet of Jones Furniture & Appliances for December 31,2020and 2019 is shown as follows: Assets dec 31, 2020 dec 31, 2019
2.
The comparative balance sheet of Jones Furniture & Appliances for December 31,2020and 2019 is shown as follows:
Assets dec 31, 2020 dec 31, 2019
Cash 95000 112000
Accounts receivable (net) 350000 320000
inventories 685000 600000
investments 0 100000
Land 375000 0
equipment 620000 575000
Accumulated depreciation- (275000) (200000)
Equipment
Total assets 1850000 1507000
Liabilities andStockholdersequity
Accounts payable 260000 210000
Accrued expenses payable 75000 82000
Dividends payable 25000 20000
Common stock, $10 par 500000 450000
Paid-in capital: excess of issue 140000 100000
Par-common stock
Retained earnings 850000 645000
Total liabilities &stockholdersequity 1850000 1507000
Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows:
A. The investments were sold for $120,000 cash.
B. Equipment and land were acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $280,000 credit to Retained Earnings for net income.
F. There was a $75,000 debit to Retained Earnings for cash dividends declared.
Prepare Jones Furniture & Appliances' statement of cash flows, using the indirect method of presenting cash flows from operating activities
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