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ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the Statement of Cash Flows, as of December 31, 2019,

ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the Statement of Cash Flows, as of December 31, 2019, for ABC Corp.

Comparative Balance Sheet Data

ABC Corp

Balance Sheet

December 31

2019

2018

Cash

$ 142,740

$ 46,080

Accounts Receivable

126,360

58,800

Inventories

146,250

123,420

Long-term Investments

111,800

112,800

Equipment, net

286,000

228,600

$813,150

$ 569,700

Accounts Payable

$ 130,000

$ 80,760

Income Tax Payable

21,450

20,400

Bonds Payable

97,500

132,000

Common Shares

260,000

210,000

Retained Earnings

304,200

126,540

$813,150

$ 569,700

Income Statement, Dec 31, 2019

Sales

$ 479,892

Cost of Goods Sold

161,644

Gross Profit

$318,248

Operating Expenses

Depreciation Expense

58,800

Other Cash Expenses

17,374

Interest Expense

3,822

Income Tax Expense

10,185

Loss on Sale of Equipment

16,800

Net Income

$ 211,267

  1. There was no gain or loss on the long-term investments sold or the bonds retired.
  2. Old equipment was sold during the year for $2,100 cash.
  3. New equipment was purchased for $135,100.
  4. Dividends were paid during the year*.
  5. Additional shares of stock were issued during the year. There were no preferred shares. The number of common shares increased from 50,000 in 2016 to 60,000 in 2017.

Dividends Paid = RE beginning +/-Profit or Loss Dividends Paid = RE ending

Where RE beginning is the Retained Earnings at December 31, 2018 and RE ending is Retained Earnings at December 31, 2019.

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