Question
Ally Corp. has net income of $30,000 and dividends declared and paid of $12,000 in 2021. Net income included depreciation expense of $13,000, as well
Ally Corp. has net income of $30,000 and dividends declared and paid of $12,000 in 2021. Net income included depreciation expense of $13,000, as well as a gain of $8,000 recorded when fully depreciated equipment (cost and accumulated depreciation of $20,000) was sold. Cash was used to repay long term debt in 2021. Ally reports the following balance sheets: 2021 2020 Cash $10,000 $12,000 Accounts receivable 8,000 11,000 Equipment 60,000 80,000 less accumulated depreciation (23,000) (30,000) Total assets $55,000 $73,000 Accounts payable $14,000 $6,000 Income taxes payable 2,000 6,000 Long term debt 10,000 50,000 Common stock 6,000 6,000 Retained earnings 23,000 5,000 Total liabilities and equity $55,000 $73,000 Prepare Ally's 2021 statement of cash flows in good form under generally accepted accounting principles.
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