Carter Fuel Injection Systems, Inc.

Comparative Balance Sheet

Dec. 31, 2020 Dec. 31, 2019

Assets

Cash $ 34,000 $11,000

Accounts receivable 18,000 13,000

Inventory 25,000 17,000

Prepaid expenses 6,000 9,000

Long-term investments -0- 17,000

Equipment 60,000 33,000

Accumulated depreciationequipment (20,000) (15,000)

Total assets $123,000 $85,000

Liabilities and Stockholders' Equity

Accounts payable $ 17,000 $ 7,000

Bonds payable 36,000 45,000

Common stock 40,000 23,000

Retained earnings 30,000 10,000

Total liabilities and stockholders' equity $123,000 $85,000

Additional information:

1. Net income for the year ending December 31, 2020 was $35,000.

2. Cash dividends of $15,000 were declared and paid during the year.

3. Long-term investments that had a cost of $17,000 were sold for $14,000.

4. No equipment was sold during 2020.

HINT: depreciation expense must be determined. Notice in #4 it states no equipment was sold during 2020, therefore, focus on the change in accumulated depreciation.

Prepare only the Cash Flows from Operating Activities section.