+ Ch 22: Homework Question 3 of 8 -/19 View Policies Current Attempt in Progress Pronghorn Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: PRONGHORN INC. Comparative Statement of Financial Position December 31 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation equipment Goodwill Total assets 2020 $45,700 57,970 39.940 5,210 165.200 (35,210) 16.000 $294.810 2019 $25,050 51,110 60,100 4,010 130,030 (25,010) 54,000 $299,290 $46,200 Accounts payable Income tax payable Salaries and wages payable Short-term loans payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity 3.940 8,050 7.970 56,000 130.000 42,650 $294,810 $40,030 6,100 4,050 10,110 73,000 130,000 36,000 299,290 $346,075 165,000 181,075 120.000 PRONGHORN INC. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on disposal of equipment Income before income tax Income tax expense Net income 61,075 $11.500 38,000 (2,200) 47,300 13,775 4,125 $9.650 Additional information: 1. 2. Dividends on common shares in the amount of $3,000 were declared and paid during 2020. Depreciation expense is included in operating expenses, as is salaries and wages expense of $69.500. Equipment with a cost of $22,000 that was 70% depreciated was sold during 2020. 3. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign eg. -10,000 or in parenthesis eg. (10,000).) Pronghorn Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 Pronghorn Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 $ Net Increase in Cash Net Cash Provided by Financing Activities Cash Flows from Financing Activities Cash, January 1, 2020 Cash Flows from Investing Activities Net Decrease in Cash Net Cash Used by Operating Activities Cash Flows from Operating Activities Net Cash Provided by Investing Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Cash, December 31, 2020 Net Cash Provided by Operating Activities Pronghorn Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 $ Cash Received from Customers Principal Payments on Short-Term Loans Proceeds on Sale of Equipment Cash Paid for Interest Cash Paid to and on Behalf of Employees Purchase of Equipment Principal Payments on Long-Term Loans Cash Paid for Taxes Dividends Paid Cash Paid to Suppliers for Goods and Services Cash Paid for Other Operating Expenses Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 Net Decrease in Cash Net Cash Provided by Financing Activities Cash Flows from Financing Activities Net Cash Used by Financing Activities Net Cash Provided by Investing Activities Cash, January 1, 2020 Net Cash Used by Investing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Operating Activities Net Cash Used by Operating Activities Net Increase in Cash Cash, December 31, 2020 Cash, January 1, 2020 Net Cash Used by Investing Activities Cash Flows from Operating Activities Cash Flows from Investing Activities Net Decrease in Cash Cash Flows from Financing Activities Net Cash Provided by Operating Activities Net Cash Provided by Financing Activities Net Cash Used by Operating Activities Net Cash Used by Financing Activities Net Increase in Cash Net Cash Provided by Investing Activities Cash, December 31, 2020 Proceeds on Sale of Equipment Principal Payments on Short-Term Loans Principal Payments on Long-Term Loans Cash Paid to Suppliers for Goods and Services Cash Received from Customers Purchase of Equipment Cash Paid for Interest Cash Paid for Taxes Cash Paid for Other Operating Expenses Cash Paid to and on Behalf of Employees Dividends Paid Cash, December 31, 2020 Net Decrease in Cash Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Cash Flows from Investing Activities Net Increase in Cash Net Cash Used by Operating Activities Cash Flows from Operating Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Cash, January 1, 2020 Cash Flows from Financing Activities Net Cash Used by Investing Activities Question 3 of 8 -/1 E Net Cash Provided by Financing Activities Cash Flows from Investing Activities Net Cash Provided by Operating Activities Net Cash Provided by Investing Activities Cash, January 1, 2020 Net Increase in Cash Net Cash Used by Operating Activities Net Cash Used by Financing Activities Cash Flows from Financing Activities Cash Flows from Operating Activities Net Cash Used by Investing Activities Cash, December 31, 2020 Net Decrease in Cash $ Principal Payments on Short-Term Loans Dividends Paid Cash Paid for Taxes Cash Paid to and on Behalf of Employees Proceeds on Sale of Equipment Principal Payments on Long-Term Loans Cash Paid to Suppliers for Goods and Services Cash Paid for Other Operating Expenses Cash Paid for Interest Cash Received from Customers Purchase of Equipment $ Net Cash Used by Operating Activities Net Cash Provided by Investing Activities Cash Flows from Operating Activities Net Cash Provided by Operating Activities Cash Flows from Investing Activities Net Cash Used by Financing Activities Net Cash Provided by Financing Activities Net Cash Used by Investing Activities Net Increase in Cash Cash, December 31, 2020 Cash, January 1, 2020 Cash Flows from Financing Activities Net Decrease in Cash Assistance Used Attempts: 0 of 3 used Submit