Angela's Cleaning Consortium Angela's Cleaning Consortium Income Statement Comparative Balance Sheet For the Year Ended December 31, 2020 December 31, 2020 and 2019 Net sales 2020 2019 386,000 ASSETS Cost of goods sold (212,000) Gross profit Current assets 174,000 $ Cash 66,500 S 62,000 Operating expenses Salaries and wages expense Accounts receivable 95,000 113,000 (66,000) Merchandise inventory 172,000 165,000 Depreciation expense (29,500) Total current assets 333,500 340,000 Other operating expenses (23,500) Long-term investments Income from operations 55,000 Other revenues and gains Investment in Walking Dead Co. 50,000 Interest revenue Property, buildings, and equipment 507,000 304,000 19,500 Less: Accumulated depreciation (42,000) Dividend revenue (59,500) 9,700 $ 652,000 $ 781,000 Total assets Gain on disposal of plant asse 7,500 Liabilities and Stockholders' Equity Other expenses and losses Current liabilities Interest expense (15,000) $ 185,000 $ 76,700 Accounts payable 144,000 Income before income taxes 17,000 37,000 Income tax expense (14,000) Accrued liabilities Total current liabilities 222,000 Net Income $ 62,700 161,000 Long-term liabilities Notes payable, long-term 160,000 90,000 Total liabilities 321,000 312,000 Stockholders' equity Common stock 370,000 250,000 Retained earnings 130,000 90,000 (40,000) Treasury stock 460,000 Total Stockholders' Equity 340,000 $ 652,000 Total Liabilities & Stockholders' Equity 781,000 Additional Information: Sold plant assets with a cost of $75,000 and accumulated depreciation of $12,000 A. yielding a gain of disposal of plant assets of $7,500. B. Purchased plant assets by paying cash. C. Issued Notes Payable for Cash D. Sold investment in Walking Dead Co at cost (zero gain/loss). E. Issued Common Stock for Cash F. Purchased Treasury Stock with Cash Requirements: Prepare, in good form, a Statement of Cash Flows using the indirect method. Formatting: Do NOT use cents (.00) in any records. Journal entries, adjusting and closing entries do not contain dollar signs or cents. Amounts do contain commas. Financial Statements do not contain cents but amounts do contain commas. The "rules" for dollar signs are: First amount in a new column includes a dollar sign Use a double underline and a dollar sign for totals on all financial statements Refer to the text for proper headings and format of financial statements For the Year Ended December 31, 2020 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase (decrease) in cash Cash at beginning of year Cash at end of year Post activity in these accounts to arrive at amounts needed. Retained Earnings Plant Assets 90,000 304,000 507,000 130,000 Accumulated Depreciation 42,000 59,500 Journal Entry to record sale of Plant Asset: Cash Accumulated Depreciation Plant Assets Gain