ad Sterling Design L. Balance Sheet September 30, 2020 and 2019 2020 2019 $ 261,000 17,000 $ 278,000 Sterling Design Id. Income Statement For the Year Ended September 30, 2020 Revenues Sales revenue Interest revenue Total revenues Expenses Cost of goods sold 88,000 Salaries expense 37.000 Amortization expense 4,200 Other operating expenses 22,000 Interest expense 22,000 43,000 Income tax expense Total expenses Net Income Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventory Prepaid expenses Plant and equipment, net Land 7,200 $ 47,000 2,100 37,000 2.900 83,000 121,000 6,500 38,000 740 69,000 2,200 61,000 70,000 $ 300,200 $ 247 440 Total assets Current liabilities Accounts payable Interest payable Salaries payable $ 216,200 61,800 49,000 $ $ 5,800 3.500 45,800 6.500 7,600 The 2020 income statement and comparative blance sheet of Sering Design Lid follow Click the icon to view the income statement.) m Click the icon to view the balance sheet.) Storing Design Mi had no non cashinancing and wivesting transactions during 2020. During the year, there were notes of land or plant and equipment, and no moms of notes payable Required 1. Prepare the 2020 cash flow statement by the Indirect method 2. Evaluate the cash low for this company Requirement 1. Prepare the 2020 cash flow statement by the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Sterling Design Lid. Cash Flow Statement For the Year Ended September 30, 2020 Cash flows from operating activities Net Income Add(subtract) items that affect net income and cash flow differently Amortization expense Increase in accounts receivable Increase in interest receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable the balance sheet.) uring the year, there The 2020 income statement and comparative balance sheel (Click the icon to view the income statement.) (Click the Sterling Design Ltd. had no non-cash financing and investing transactions Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. WUNG GEVUMI Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable Decrease in salaries payable Decrease in other accrued liabilities Increase in income tax payable Net cash inflow from operating activities Cash flows from investing activities Acquisition of land Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable 2. Evaluate the cash flow for this company Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable Issuance of common shares Not cash outflow from financing activities Net increase (decrease) in cash Cash and cash equivalents, October 1, 2019 Cash and cash equivalents, September 30, 2020 Requirement 2. Evaluate the cash flow for this company overall Operations provided cash flows, which is the source of cash for a healthy company Sterling Design Ltd's 2020 cash flows are Stering Design Ltd. is investing in and All are signs Enter any number in the edit fields and then continue to the next question ad Sterling Design L. Balance Sheet September 30, 2020 and 2019 2020 2019 $ 261,000 17,000 $ 278,000 Sterling Design Id. Income Statement For the Year Ended September 30, 2020 Revenues Sales revenue Interest revenue Total revenues Expenses Cost of goods sold 88,000 Salaries expense 37.000 Amortization expense 4,200 Other operating expenses 22,000 Interest expense 22,000 43,000 Income tax expense Total expenses Net Income Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventory Prepaid expenses Plant and equipment, net Land 7,200 $ 47,000 2,100 37,000 2.900 83,000 121,000 6,500 38,000 740 69,000 2,200 61,000 70,000 $ 300,200 $ 247 440 Total assets Current liabilities Accounts payable Interest payable Salaries payable $ 216,200 61,800 49,000 $ $ 5,800 3.500 45,800 6.500 7,600 The 2020 income statement and comparative blance sheet of Sering Design Lid follow Click the icon to view the income statement.) m Click the icon to view the balance sheet.) Storing Design Mi had no non cashinancing and wivesting transactions during 2020. During the year, there were notes of land or plant and equipment, and no moms of notes payable Required 1. Prepare the 2020 cash flow statement by the Indirect method 2. Evaluate the cash low for this company Requirement 1. Prepare the 2020 cash flow statement by the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Sterling Design Lid. Cash Flow Statement For the Year Ended September 30, 2020 Cash flows from operating activities Net Income Add(subtract) items that affect net income and cash flow differently Amortization expense Increase in accounts receivable Increase in interest receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable the balance sheet.) uring the year, there The 2020 income statement and comparative balance sheel (Click the icon to view the income statement.) (Click the Sterling Design Ltd. had no non-cash financing and investing transactions Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. WUNG GEVUMI Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable Decrease in salaries payable Decrease in other accrued liabilities Increase in income tax payable Net cash inflow from operating activities Cash flows from investing activities Acquisition of land Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable 2. Evaluate the cash flow for this company Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable Issuance of common shares Not cash outflow from financing activities Net increase (decrease) in cash Cash and cash equivalents, October 1, 2019 Cash and cash equivalents, September 30, 2020 Requirement 2. Evaluate the cash flow for this company overall Operations provided cash flows, which is the source of cash for a healthy company Sterling Design Ltd's 2020 cash flows are Stering Design Ltd. is investing in and All are signs Enter any number in the edit fields and then continue to the next
