Attached are the comparative balance sheets for the Beirut Corporation for the years ending December 31,20X0 and 20X1I. Also attached is additional information available for the year ending December 31, 20X1 for preparing the statement of cash flows. REQUIRED: Prepare a statement of cash flows, in proper form, for Beirut Corporation for the year ending December 31, 20X1, using the indirect method. Include a schedule of noncash investing and financing activities in your statement. Show all supporting computations. BEIRUT CORPORATION COMPARATIVE BALANCE SHEETS AT DECEMBER 31, 20x0 AND 20X1 20X1 20x0 175,000 285,000 562,000 390,000 160,000 645,000 240,000) 230,000) 32,000 S 2,367,000 S 2,019,000 S 250,000S Cash Accounts Receivable (Net) Inventories Investment in Lebanon, Inc. (under the equity method) Land Plant and Equipment Accumulated Depreciation, Plant and Equipment Goodwill 325,000 530,000 50,000 275,000 750,000 27,000 TOTAL ASSETS Accounts Payable Accrued Liabilities Notes Payable, Long Term Bonds Payable Deferred Income Taxes Common Stock, $10 par value Additional Paid In Capital Retained Earnings Treasury Stock (at cost) S 460,000 S 424,000 146,000 200,000 225,000 46,000 380,000 193,000 430,000 175,000 260,000 145,000 52,000 460,000 230,000 585,000 0 25,000) TOTAL LIABILITIES AND STOCKHOLDERS S 2,367,000 2,019,000 EQUITY BEIRUT CORPORATION ADDITIONAL INFORMATION AVAILABLE FOR PREPARATION OF STATEMENT OF CASH FLOws FOR YEAR ENDING DECEMBER 31, 20X1 (a) Beirut sold plant and equipment assets with an original cost of $100,000 and accumulated depreciation of $70,000 at a loss of $10,000. All other changes to the plant and equipment account were due to purchases of assets for cash (b) Beirut purchased land with a fair market value of $115,000 by paying S15,000 down and financing the rest by use of a long term note payable. Beirut Company's investment in Lebanon, Inc. is accounted for using the equity method. Beirut owns 25% of River's outstanding common stock. Lebanon reported earnings of $300,000 for the year and paid dividends of $60,000 during the year (d) Beirut's bonds payable are convertible into shares of common stock. Bonds with a face amount of $80,000 were converted by bondholders for 6,000 shares of common stock. The company did not issue or redeem any bonds during the year. (e) Beirut issued 2,000 shares of common stock for $32,000 (f) Deferred income taxes represent temporary differences due to using accelerated depreciation for tax purposes and straight line depreciation for financial accounting purposes (g) The company did not issue any other long term notes other than those discussed in other transactions above. All other changes to the long term notes payable account were due to repayments (h) Beirut sold all of its treasury stock for $30,000 cash (i) Beirut paid $62,000 of dividends during the year to its stockholders. All other changes to retained earnings were due to net income earned for the period
