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Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,

Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

12/31/20

12/31/19

Cash

$6,000

$7,100

Accounts receivable

62,000

50,700

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

35,300

17,900

Inventory

40,400

59,600

Prepaid rent

5,100

3,900

Equipment

153,300

131,200

Accumulated depreciationequipment

(35,300

)

(25,100

)

Copyrights

46,000

50,000

Total assets

$312,800

$295,300

Accounts payable

$46,200

$39,700

Income taxes payable

3,900

6,100

Salaries and wages payable

7,900

4,000

Short-term loans payable

8,000

10,100

Long-term loans payable

59,900

68,300

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

56,900

37,100

Total liabilities & stockholders equity

$312,800

$295,300

BONITA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020

Sales revenue

$334,625

Cost of goods sold

174,300

Gross profit

160,325

Operating expenses

118,900

Operating income

41,425

Interest expense

$11,300

Gain on sale of equipment

2,000

9,300

Income before tax

32,125

Income tax expense

6,425

Net income

$25,700

Additional information:

1. Dividends in the amount of $5,900 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 indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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BONITA INC. Statement of Cash Flows Adjustments to reconcile net income to e Textbook and Media Save for Later Your grade has been recorded in Wed, Apr 1, 2020, 12:52:34 PM (Ameri Previous

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