Question
ABX Ltd., Comparative Balance Sheet, December 31, 2021 2021 2020 Cash $ 43,000 $ 24,000 Accounts receivable, net 35,000 38,000 Inventory 114,000 82,000 Land 120,000
ABX Ltd., Comparative Balance Sheet, December 31, 2021
2021 2020
Cash $ 43,000 $ 24,000
Accounts receivable, net 35,000 38,000
Inventory 114,000 82,000
Land 120,000 190,000
Building 200,000 200,000
Accumulated amortization (50,000) (40,000)
Equipment 1,030,000 600,000
Accumulated amortization (118,000) (94,000)
$1,374,000 $1,000,000
Accounts payable $ 115,000 $ 100,000
Bonds payable 320,000 -0-
Common shares 750,000 750,000
Retained earnings 189,000 150,000
$1,374,000 $1,000,000
Additional 2021 data:
- Net income for the year was $84,000.
- Cash dividends paid amounted to $45,000.
- Land was sold for cash proceeds of $80,000.
- Equipment was sold for $70,000 (original cost $150,000dr; accumulated amortization of $60,000cr).
Prepare ABXs Statement of Cash Flows for 2021 using the Indirect Method.
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