Acc2273 Intermediate Acctg II

Statement of Cash Flows Assignment

Pick-A-Perfect-Pie

The balance sheet of Pick-A-Perfect-Pie Co. provided the information below:

	Dec. 31, 2019	Dec. 31, 2020
Cash Accounts receivable (net) Inventory Long-Term Investments Land Plant Accumulated Depreciation - Plant Equipment Accumulated Depreciation - Equipment	$ 12,000 27,000 24,000 36,000 30,000 90,000 (21,000) 60,000 (30,000) $228,000	$ 33,000 36,000 15,000 30,000 120,000 90,000 (30,000) 66,000 (24,000) $336,000
Accounts Payable Wages Payable (Accrued) Notes Payable - Long-Term Common Shares Retained Earnings: Unappropriated	$24,000 3,000 30,000 150,000 21,000 $228,000	$6,000 0 57,000 225,000 48,000 $336,000

Additional Data:

1. Net income for the year, $51,000.
2. Depreciation expense on plant for the year, $9,000, on equipment for the year, $6,000.
3. Sales on account, $201,000.
4. Purchases on account, $105,000.
5. Expenses paid in cash (including accrued wages), $45,000.
6. Collections on accounts receivable, $192,000.
7. Payment on accounts payable, $123,000
8. At the end of the year sold equipment costing $24,000 (50% depreciated) for $9,000 cash.
9. Purchased land costing $30,000; paid $6,000 cash, gave longterm note for the balance.
10. Paid $12,000 on longterm notes.
11. Sold $30,000 of capital shares.
12. Purchased equipment costing $30,000; paid onehalf cash, balance due in three years (interestbearing note).
13. Issued 1,500 shares common shares valued at $45,000 for land that cost $60,000, paid balance in cash.
14. Paid dividends, $24,000.
15. Sold a longterm investment for $24,000 cash. (Hint do a T acct for the LT Investment acct)
16. Pick-A-Perfect-Pie holds 40% of the Crustys Crust Co. common stock and accounts for the longterm investment on the equity method (remember that ? J ). Crustys Crust Co reported a net income of $30,000 for 2020. Crustys Crust Co. paid no cash dividends in 2020. Cost of the investment is equal to 40% of the net assets of Crustys Crust Co.

INSTRUCTIONS:

Prepare a Statement of Cash Flows for the year ended December 31, 2020 using the indirect method.