2019 Oakley Company Comparative Balance Sheets December 31 Assets 2020 Cash $82,400 Accounts receivable 91,100 Inventory 128,700 Investments 85,700 Equipment 258,000 Accumulated depreciation equipment (48,800) $597,100 $47,600 56,100 102,500 89,000 206,000 (39,000) $462,200 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $58,500 12,100 98,000 252,000 176,500 $597,100 $48,900 19,300 69,000 204,000 121,000 $462,200 Oakley Company Income Statement For the Year Ended December 31, 2020 Sales revenue Gain on disposal of plant assets $294,000 8,800 302,800 Less: Cost of goods sold Operating expenses (excluding depreciation expense) Depreciation expense Income tax expense Interest expense Net income $97,900 15,700 50,100 6,800 3,300 173,800 $129,000 Additional information: 1. 2. Equipment costing $103,000 was purchased for cash during the year. Investments were sold at cost. Equipment costing $51,000 was sold for $19,500, resulting in gain of $8,800. A cash dividend of $73,500 was declared and paid during the year. 3. 4. Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns. (Show details of retained earnings and accumulated depreciation, do not net) OAKLEY COMPANY Worksheet-Statement of Cash Flows Reconciling Items Balance 12/31/19 Balance 12/31/20 Balance Sheet Accounts Debit Credit Debits Totals Credits Totals Statement of Cash Flow Effects Totals Totals Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Inventory Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Inventory Issuance of Bonds Issuance of Common Stock Loss on Disposal of Plant Assets Net Income Payment of Dividends Purchase of Equipment Purchase of Investments Purchase of Plant Assets Sale of Investments Sale of Plant Assets List of Accounts