21. (10 points) G Company's 2018 und 2019 balance sheets and 2019 income statement follow: 12-31-18 Cash $700,000 Accounts receivables, net 1,200,000 Prepaid items 100,000 Investments 0 Plant assets 3,800,000 Accumulated depreciation (1,000,000) $4.800,000 12-31-19 $2,043,000 800,000 138,000 412,000 4,600,000 (1.400,000) $6.592.000 Short-term debt Accounts payable Accrued liabilities Cash dividends payable Bonds payable, net Common stock (Si par value) Additional paid-in-capital, common stock Treasury stock Retained earnings 200,000 100.000 300,170 100,000 298,830 100,000 1.400,000 (75.000) 2.376.000 $4,800.000 750,000 100,000 88,000 105,000 496,000 100,000 1.400,000 (95.000) 3,649.000 S6.593.000 Sales Operating expenses Other income gains losses.net Interest expense Income before taxes Income tax expense Net income $19.000.000 16,800,000 18.406 29.000 2.189.406 496 406 51693.000 . . . Additional information for G follows: On 01-01-19, G paid $400,000 for 60% of Zima Company's outstanding common stock. During 2019, Zima reported net income of $20,000 On 07-01-19, G sold a plant asset for $75,000, G had acquired the plant asset on 01-01-15 for $500,000. On this particular asset Gestimated a 5-year useful life and no salvage value. Gdepreciates its plant assets using a straight-line method and records depreciation expense to the nearest full month During 2019. G recorded a $15.000 impairment loss on one of its plant assets. On 12-31-14, Gissued S300,000 of its 6%, 5-year term bonds. The bonds pay interest every 06-30 and 12-31. At the time issued the bonds, similar bonds paid 6.25% interest. At the time of isance, Gincurred and paid $2,000 of bond issuance costs. On 06-30-19, after making it somiannual interest payment, G retired the bonds at 101. On 12-31-19, issued $500,000 of its 2%, 5.year term boods. The bonds pay interest every 06-30 and 12-31. At the time issued the bonds, similar bonds paid 2% interest. At the time of issuance, Gincurred and paid $4,000 of bond issuance cost On 08-04-19. G bought back some of its outstanding common stock. For 2019, this was G's only treasury stack transaction. In the past, G has only bought back its common stock; it has never reissued any of its treasury stock. During 2019, 6 declared and distributed cash dividends on its outstanding common stock On G's income statement, the other income guinslosses, net caption consists of printouses on fixed asset sales, pain losses on bond retirements, and impairment losse Grocords adjusting journal entries only once a year as of year-end Prepare a statement of cash flows for the year ended 12-31-19. uses the indirect method. Label your section answers as provided by OR used in. In your reconciliation of net income to cash flows from operating activities, be specific in your reconciling items. Also, be sure to support your reconciling item amounts with journal entries and/or amortization schedules and/or other supporting calculations that you deem appropriate
