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26) The following is a comparative balance sheet of Cowboy Company for 2020 and 2021. 2021 2020 Cash $ 250,000 $ 220,000 Accounts Receivable 327,600

26) The following is a comparative balance sheet of Cowboy Company for 2020 and 2021.

2021 2020

Cash $ 250,000 $ 220,000

Accounts Receivable 327,600 356,000

Inventory 822,000 780,000

Available-for-Sales Security 0 200,000

Equipment 2,400,000 2,040,000

Accumulated Depreciation (700,000) (760,000)

3,099,600 2,836,000

Accounts Payable 359,000 281,000

Bonds Payable, due 2025 0 400,000

Common Stock, $20 par 1,800,000 1,600,000

Additional Paid-in Capital 280,000 200,000

Retained Earnings 660,600 355,000

3,099,600 2,836,000

Additional information:

1) Net income: $545,600 for 2021 and $555,000 for 2020.

2) Depreciation reported on the 2021 income statement: $140,000.

3) Fully depreciated equipment ($200,000), no residual value, was scrapped for nothing (thrown away). Equipment was purchased for $560,000.

4) Bonds of $400,000 were retired at their face value.

5) 10,000 shares of common stock were issued for cash at $28 per share.

6) Cash dividend declared and paid, $240,000

7) Available-for-sale securities with a book value of $200,000 were sold for $300,000.

Prepare a statement of cash flows (operating, investing and financing activities) for Cowboy for 2021, using the indirect method.

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