2,520,000 1,746,000 774,000 Income Statement For the year ended December 31, 2020 Net Sales $ Cost of goods sold Gross Profit Operating Expenses Depreciation expense Other operating expenses Operating Income Gains and Losses Gain on sale of land Loss on sale of equipment Net Income $ 87,000 237,000 450,000 11,700 (8,360) 453,340 VIOJA TELE INC Balance Sheets December 31 2020 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Non-Curret assets Land Equipment Accumulated depreciation - Equipment Total assets 192,780 66,900 131,500 2,860 66,780 81,000 126,000 4,320 117,000 508,200 (84,700) 934,540 200,000 346,000 (100,500) 723,600 25,500 3,300 31,400 79.000 2.100 33,500 Liabilities & Stockholders' Equity Current Liabilities Accounts payable Interest payable Income tax payable Long-term Liabilities Notes payable Stockholders' Equity Common Stock Additional paid-in capital Retained earnings Total Liabilities & Stockholders' Equity 153,000 193,000 70,000 302,000 349,340 934,540 60,000 210,000 146,000 723,600 ADDITIONAL INFORMATION: 1 The company sold land for a gain of $11,700. No other land transaction occurred during the period. 2 The company sold a piece of equipment with an original cost of $122,800 for a loss of $8,360. The company also purchased new equipment. The cost of the new equipment was financed by a $50,000 long-term note and the balance was paid with cash. 3 Common stock was issued for cash. 4 The only changes affecting retained earnings are net income and cash dividends paid. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIOJA TELE INC Statement of Cash Flows December 31, 2020 ADJUSTMENTS TO RECONCILE NET INCOME: Gain on sale of land Loss on sale of equipment (117,000) 8,360 87,000 530,320 508,680 0 0 0 DISCLOSURE NOTE: The company paid non-cash dividends during the period