Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $450,000 Wages and Other Operating Expenses 195,000 Depreciation Expense 22,000 Goodwill Amortization Expense 7,000 Interest Expense 5,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 720,000 Net Income $50,000 Support Business Course $480,000 $489,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $32,000 3,000 6,000 60,000 252,000 127,000 $480,000 $28,000 7,000 8,000 100,000 248,000 98,000 $489,000 During the year, the company sold for $15,000 cash old equipment that had cost $34 000 and had $19.000 accumulated denreciation Support Business Course During the year, the company sold for $15,000 cash old equipment that had cost $34,000 and had $19,000 accumulated depreciation. New equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable. Bonds payable of $100,000 were retired for cash at a loss. A $21,000 cash dividend was declared and paid. All stock issuances were for cash. Required a. Compute the change in cash that occurred in 2019. b. Prepare a statement of cash flows using the indirect method. Support Business Course Required a. Compute the change in cash that occurred in 2019. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2019 $ b. Use a negative sign with cash outflow answers. Support DRUTT COMPANY Business Course For Year Ended December 31, 2019 Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Goodwill Amortization Loss on Bond Retirement Accounts Receivable Inventory Prepaid Expenses Accounts Payable Interest Payable S Support Business Course Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Equipment Cash Flow from Financing Activities Retirement of Bonds Payable Issuance of Common Stock Payment of Dividends Cash Used by Financing Activities NetChange in Cash Cash at Beginning of Year Cash at End of Year Support