A in 2019. ws using the indirect method. A$21,000 cash for tive balance sheets as of December 31 of 2019 and 2018 follow: Statement of Cash Flows (Indirect Method) The Sky Company's income statement and compars Sales revenue. Dividend income. Cost of goods sold SKY COMPANY Income Statement For Year Ended December 31, 2015 Wages and other operating expenses Depreciation expense.. Patent amortization expense Interest expense. Income tax expense. Loss on sale of equipment... Gain on sale of investments. Net income. $800,000 19.000 LO2 X 819,000 $440,000 130,000 39,000 7,000 13,000 30,000 5,000 (10,000) 654,000 $165,000 SKY COMPANY Balance Sheets Assets Cash and cash equivalents Accounts receivable.. Inventory.. Prepaid expenses.. Long-term investments-available for sale Fair value adjustment to investments.. Land. Buildings. Accumulated depreciation-Buildings. Equipment Accumulated depreciation-Equipment. Patents.. Total assets Dec. 31, 2019 Dec. 31, 2018 $ 63,000 $ 29,000 45,000 100,000 10,000 - 35,000 77,000 6,000 50,000 7,000 190,000 100,000 445,000 350,000 (91,000) (75,000 179,000 225,00 (42,000) (46,00 50,000 32,0 $949,000 $790,5 C continued from previous page SKY COMPANY Balance Sheets Liabilities and Stockholders' Equity Accounts payable. Interest payable Income tax payable Bonds payable Preferred stock ($100 par value) Common stock ($5 par value) Paid-in-capital in excess of par value-Common. Retained earnings Unrealized gain on investments Total liabilities and stockholders' equity During the year, the following transactions occurred; Dec. 31, 2019 $ 21,000 6,000 8,000 135,000 100,000 379,000 Dec. 31, 2018 $ 18,000 5.000 12,000 130,000 75,000 364,000 133,000 124,000 167,000 55,000 7,000 $949,000 $790,000 1. Sold long-term investments costing $50,000 for $60,000 cash. Unrealized gains totaling $7,000 related to these investments had been recorded in earlier years. At year-end, the fair value adjust- ment and unrealized gain account balances were eliminated. 2. Purchased land for cash. 3. Capitalized an expenditure made to improve the building. 4. Sold equipment for $14,000 cash that originally cost $46,000 and had $27,000 accumulated depreciation. 5. Issued bonds payable at face value for cash. 6. Acquired a patent with a fair value of $25,000 by issuing 250 shares of preferred stock at par value. 7. Declared and paid a $53,000 cash dividend. 8. Issued 3,000 shares of common stock for cash at $8 per share. 9. Recorded depreciation of $16,000 on buildings and $23,000 on equipment. Required a. h Calculate the change in cash and cash equivalents that occurred during 2019. Prepare a statement of cash flows using the indirect method. CE Kessler A Week 4 Home nsert Draw Page Layout Formules Any F B fx C Review View Tell me A-0-0-0- Tast D E Supporting computations M More Se 1 8O 2 0 A W N 13 31 44 5 " A 5 B 20 7 E R T Y S D X option H command C LL F G H > B One insert Dr Page Layout Formulas Data Review View all me De More These Ca ---2-2-0-9 Alan Recanty Test Dev & Looks & M Tine 59 B MAN ME The M THE O Acted deprec 7 . 2 : Q W W A N S Kessler A Week 4 02 3 ed 4 x $810 5 6 201 E R T Y 23 7 D F G H H command of option C V B