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As of December 31, 2020 and 2019 12/31/20 12/31/19 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400

As of December 31, 2020 and 2019

12/31/20

12/31/19

Cash

$6,000

$7,000

Accounts receivable

61,800

50,700

Short-term debt investments (available-for-sale)

35,300

17,900

Inventory

39,800

59,400

Prepaid rent

4,900

4,000

Equipment

153,100

130,500

Accumulated depreciationequipment

(35,000

)

(24,700

)

Copyrights

45,900

50,500

Total assets

$311,800

$295,300

Accounts payable

$46,000

$39,700

Income taxes payable

4,000

5,900

Salaries and wages payable

8,100

4,100

Short-term loans payable

8,100

10,100

Long-term loans payable

59,900

68,600

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

55,700

36,900

Total liabilities & stockholders equity

$311,800

$295,300

For the Year Ending December 31, 2020

Sales revenue

$333,125

Cost of goods sold

173,600

Gross profit

159,525

Operating expenses

118,900

Operating income

40,625

Interest expense

$11,500

Gain on sale of equipment

2,000

9,500

Income before tax

31,125

Income tax expense

6,225

Net income

$24,900

Additional information:

1. Dividends in the amount of $6,100 were declared and paid during 2020.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020.

Prepare a statement of cash flows using the direct method

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