AUTO Zoom 22-56 The income statement and balance sheets of Kenwood Company and related analysis are provided below. 2019 Problem 22-77 Preparing a Statement of Cash Flows-Indirect Method LO2, 3, 4,5 $ 90,000 Balance Sheets, December 31 2020 Assets Cash and cash equivalents .. $ 100,000 Accounts receivable (net of allowance for doubtful accounts of $10,000 and $8,000, respectively) 210,000 Inventory.. 260,000 Land 325,000 Plant and equipment.. 580,000 Accumulated depreciation (90,000) Patents 30,000 Total assets. $1,415,000 Liabilities and Stockholders' Equity Accounts payable $ 260,000 Salaries payable.. 200,000 Income tax payable 140,000 Bonds payable (due December 15, 2029) 130,000 Common stock, par value $5, authorized 100,000 shares, issued and outstanding 50,000 and 42,000 shares, respectively. 250,000 Additional paid-in capital... 233,000 Retained earnings 202.000 Total liabilities and stockholders' equity $1,415,000 140,000 220,000 200,000 633,000 (100,000) 33,000 $1,216,000 $ 200,000 210,000 100,000 180,000 210,000 170,000 146,000 $1,216,000 2020 $1,000,000 ................ Income Statement, For Year Ended December 31 Sales revenue..... Expenses and losses Cost of goods sold Salaries Depreciation .... Patent amortization.... Loss on sale of equipment Interest expense...... Miscellaneous expenses........ Gain on early extinguishment of debt Income tax expense ........... Net income ........ ......... (560,000) (190,000) (20,000) (3,000) (4,000) (16,000) (8,000) 12,000 (90,000) $ 121,000 BAuto Zoom 22-56 Additional paid-in capital... Retained earnings Total liabilities and stockholders' equity 233,000 202,000 $1,415,000 170,000 146,000 $1,216,000 Income Statement, For Year Ended December 31 2020 $1,000,000 Sales revenue. Expenses and losses Cost of goods sold Salaries Depreciation Patent amortization. Loss on sale of equipment Interest expense Miscellaneous expenses. Gain on early extinguishment of debt. Income tax expense Net income (560,000) (190,000) (20,000) (3,000) (4,000) (16,000) (8,000) 12,000 (90,000 $ 121,000 Analysis of selected accounts and transactions 1. On February 2, 2020, issued a 10% stock dividend to stockholders of record on January 15, 2020. The mar- ket price per share of the common stock on February 2, 2020, was $15. 2. On March 1, 2020, issued 3,800 shares of common stock for land. The common stock had a fair value of approximately $40,000 on March 1, 2020. 3. On April 15, 2020, repurchased its long-term bonds payable with a face value of $50,000 for cash. 4. On June 30, 2020, sold equipment that cost $53,000, with a book value of $23,000, for $19,000 cash. 5. On September 30, 2020, declared and paid a 4 cents per share cash dividend to stockholders of record on August 1, 2020. 6. On October 10, 2020, purchased land for $85,000 cash. Required Prepare a statement of cash flows using the indirect method to report cash flows from operating activities
