Question
A comparative statement of financial position for Nathalina Industries Inc. follows: NATHALINA INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31 Assets 2020
A comparative statement of financial position for Nathalina Industries Inc. follows: NATHALINA INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31
Assets 2020 2019 Cash $21,000 $34,000 Accounts receivable 114,000 54,000 Inventory 220,000 189,000 Land 71,000 110,000 Equipment 240,000 200,000 Accumulated depreciationequipment (69,000) (42,000) Total $597,000 $545,000 Liabilities and Shareholders' Equity Accounts payable. 52,000. 59,000
Long term liabilities 25,000 0
Bonds payable 125,000 200,000 Common shares 204,000 164,000 Retained earnings 191,000 122,000 Total $597,000 $545,000
Additional information: 1. Net income for the fiscal year ending December 31, 2020, was $129,000. 2. Cash dividends were declared and paid in the year. 3. Bonds payable amounting to $75,000 were paid off. 4. Additional issuance of common shares for cash occurred in the year. 5. Land was sold for cash at a gain of $5,000. This gain on sale of the land is listed on the income statement. 6. Equipment was purchased during the year. It was purchased with $25,000 Long term liabilities and the remaining was paid with cash. 7. Depreciation Expense during 2020 was $27,000.
Required: Prepare a statement of cash flows for 2020 using the indirect method.
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