A comparative balance sheet for the Poole Corporation is presented below Poole Corporation Comparative Balance Sheet Assets 2020 2019 Cash $47,300 $33,000 Accounts receivable (net) 75,000 60,000 Prepaid insurance 12,000 16,000 Land 18,000 40,000 Equipment 70,000 60,000 Accumulated depreciation (18,000) (14,000) Total Assets $204,300 $195,000 Liabilities and Stockholders' Equity Accounts payable $ 5,500 $3,950 Wages Payable 1,800 2,050 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 30,000 55,000 Total liabilities and stockholders' equity $204,300 $195,000 Additional information Net loss for 2020 is $16,000 Cash dividends of $9,000 were declared and paid in 2020 Depreciation expense for the year totaled $15,000 Land was sold for cash at a loss of $9,000 This was the only land transaction during the year Equipment with a cost of $15,000 and accumulated depreciation of $11,000 was sold at a gain of $5,500 INSTRUCTIONS 1 Prepare, in good form, the cash flows from operating activities section of the Statement of Cash Flows using the indirect method Use the template provided with this exam Cash Flow Template 2 3 Points EXTRA CREDIT Compute the selling price of the equipment mentioned in item 5 above Show your work and answer at the bottom of the Excel template Be sure to provide labels that explain your work and answer

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A comparative balance sheet for the Poole Corporation is presented below: Poole Corporation Comparative Balance Sheet Assets 2020 2019 Cash $47,300 $33,000 Accounts receivable (net)

A comparative balance sheet for the Poole Corporation is presented below:

Poole Corporation

Comparative Balance Sheet

Assets 2020 2019

Cash $47,300 $33,000

Accounts receivable (net) 75,000 60,000

Prepaid insurance 12,000 16,000

Land 18,000 40,000

Equipment 70,000 60,000

Accumulated depreciation (18,000) (14,000)

Total Assets $204,300 $195,000

Liabilities and Stockholders' Equity

Accounts payable $ 5,500 $3,950

Wages Payable 1,800 2,050

Bonds payable 27,000 19,000

Common stock 140,000 115,000

Retained earnings 30,000 55,000

Total liabilities and stockholders' equity $204,300 $195,000

Additional information:

Net loss for 2020 is $16,000.
Cash dividends of $9,000 were declared and paid in 2020.
Depreciation expense for the year totaled $15,000.
Land was sold for cash at a loss of $9,000. This was the only land transaction during the year.
Equipment with a cost of $15,000 and accumulated depreciation of $11,000 was sold at a gain of $5,500.

INSTRUCTIONS:

1. Prepare, in good form, the cash flows from operating activities section of the Statement of Cash Flows using the indirect method. Use the template provided with this exam.

Cash Flow Template

2. 3 Points EXTRA CREDIT Compute the selling price of the equipment mentioned in item 5 above. Show your work and answer at the bottom of the Excel template. Be sure to provide labels that explain your work and answer.