Question
20x2 20x1 Cash $ 54,000 $ 36,000 Accounts receivable, net 53,000 57,000 Inventory 161,000 123,000 Land 180,000 285,000 Building 300,000 300,000 Accumulated depreciationbuilding (75,000) (60,000)
20x2 20x1
Cash $ 54,000 $ 36,000
Accounts receivable, net 53,000 57,000
Inventory 161,000 123,000
Land 180,000 285,000
Building 300,000 300,000
Accumulated depreciationbuilding (75,000) (60,000)
Equipment 1,565,000 900,000
Accumulated depreciationequipment (177,000) (141,000)
$2,061,000 $1,500,000
Accounts payable $ 202,000 $ 150,000
Bonds payable 450,000 -0-
Capital stock, $10 par 1,250,000 1,250,000
Retained earnings 159,000 100,000
$2,061,000 $1,500,000
Additional Data:
1. Net income for the year, $109,000.
2. Depreciation expense for the year, $141,000
2. Cash dividends paid during the year, $50,000.
3. Sharp sold Land for $120,000, including a $15,000 gain.
4. Sharp sold equipment for $115,00, including a $20,000 loss.
5. Sharp purchased equipment for $890,000.
Continued next page
REQUIRED: Using the form provided below, prepare a statement of cash flow using the indirect method.
PLEASE INCLUDE JOURNAL ENTRIES AND T ACCOUNTS
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