A condensed balance sheet and income statement for Barrette Inc. for the year ended December 31, 2020 is presented below: Balance Sheet 2020 2019 Cash $ 14,000 $ 12,000 Temporary Investments ** 5,000 16,000 Accounts Receivable 16,000 28,000 Prepaid Insurance 1,200 1,200 Inventory 42,000 34,000 Land 45,000 60,000 Vehicles 45,000 -0- Equipment 46,000 62,000 Accumulated depreciation Equipment (14,000) (19,500) Building 100,000 100,000 Accumulated depreciation-Building (28,000) (25,000) Patent, net 14.000 16.000 $ 286,200 S 284.700 Accounts Payable $ 53,700 $ 39,700 Accrued liabilities 6,000 18,000 Long-term note payable 15,500 22,000 Common Stock 50,000 20,000 Retained Earnings 161,000 185.000 $ 286,200 $ 284,700 ** The temporary investments are not cash equivalents! Income Statement - 2020 Sales $ 525,000 Cost of goods sold (253,000) Gross profit 272,000 Operating expenses (161,200) Income from operations 110,800 Gain on sale of equipment 21,500 Gain on sale of land 57,000 Loss on sale of equipment (2.000) Income before income taxes 187,300 Income tax expense (61.800 Net income $ 125,500 The following information was available for some of the other transactions for 2020: On January 1, 2020, equipment costing $20,000 was purchased by issuing common shares. (b) On July 1, 2020, the equipment purchased in (a), was sold for $40,500. Depreciation recorded on the equipment up to the date of sale was 1,000. Land that originally cost $15,000 was sold for $72,000. (d) In addition to the sale of the equipment referred to in (b), equipment, with an original cost of $16,000, was sold for $6,000. The net book value of the equipment at the date of sale was $8,000. (e) The patent was purchased in 2010 at a cost of $34,000 and is being amortized on a straight-line basis over 17 years (t) On December 29, 2020, a van was purchased for $45,000 cash. (g) Cash dividends were declared and paid to the shareholders in the amount of $139,500, during 2020 (h) A stock dividend was declared and issued to the shareholders during 2020. The dividend was capitalized at $10,000. (1) Temporary investments were sold for proceeds equal to cost of $11,000 6) The decrease in long-term notes payable represents principal repayments made during the year. (k) Operating expenses include: Depreciation expense - building $3,000 Depreciation expense - equipment $3,500 Required: Prepare, in proper financial statement format, the Cash Flow Statement for Barrette Inc. for the year ended December 31, 2020. Just a reminder that proper financial statement format" means using correct statement and category headings, no abbreviations, dollar signs, proper under-scoring etc. *Highly recommended that you use T-Accounts to be eligible for part marks so I can see how you arrived at certain balances *
