Question
A comparative statement of financial position for Flint Industries Inc. follows: FLINT INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31 Assets 2020
A comparative statement of financial position for Flint Industries Inc. follows: FLINT INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31 Assets 2020 2019 Cash $22,100 $35,100 Accounts receivable 117,000 54,600 Inventory 226,000 198,000 Land 81,000 115,000 Equipment 279,000 217,000 Accumulated depreciationequipment (71,000 ) (43,600 ) Total $654,100 $576,100 Liabilities and Shareholders Equity Accounts payable $53,300 $60,300 Bonds payable 174,300 220,300 Common shares 218,000 172,000 Retained earnings 208,500 123,500 Total $654,100 $576,100 Additional information: 1. Net income for the fiscal year ending December 31, 2020, was $149,000. 2. Cash dividends of $64,000 were declared and paid. Dividends paid are treated as financing activities. 3. Bonds payable amounting to $46,000 were retired through issuance of common shares. 4. Land was sold at a gain of $5,000. 5. No equipment was sold during the year. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started