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Clark Industries Comparative Balance Sheets December 31, 2020 and 2019 ($ in 000s) 2020 2019 Change Assets Cash 680 510 170 Accounts receivable 450 30
Clark Industries Comparative Balance Sheets December 31, 2020 and 2019 ($ in 000s) 2020 2019 Change Assets Cash 680 510 170 Accounts receivable 450 30 480 Prepaid Expenses 80 100 (20) Inventory 680 525 155 Land 650 600 50 Building 1000 900 100 (320) (270) 50 Less: Accumulated depreciation Equipment 2,850 2,150 700 (525) (460) 65 Less: Accumulated depreciation Patent 1,550 1,500 50 7,125 6,005 Iishilities Liabilities Accounts payable 800 450 350 Accrued Liabilities 225 290 (65) Taxes Payable 50 10 40 Interest Payable 35 15 20 Dividends Payable 50 40 10 Long-Term Note Payable 250 220 30 Shareholders' Equity Common Stock 3,200 3,000 200 Paid-in capital-excess of par 700 675 25 Treasury Stock (250) (200) 50 Retained earnings 2,065 1,505 560 7,125 6,005 Income Statements For the Year Ended December 31, 2020 ($ in 000s) Revenues Sales revenue 2,980 Income Statements For the Year Ended December 31, 2020 ($ in 000s) Revenues Sales revenue 2,980 Gain on sale of land 30 Total Revenue 3,010 Expenses Cost of goods sold 1,240 Operating Expenses 855 Loss on sale of equipment 20 Interest Expense 65 Income Tax Expense 160 Total Expenses 2,340 Net Income 670 Other information: 1. During 2020, equipment with a cost of $500 (90% depreciated) was sold at a loss. Equipment was purchased with cash 1. During 2020, equipment with a cost of $500 (90% depreciated) was sold at a loss. Equipment was purchased with cash. 2. Land was purchased during the year for $200. The previous landowner was given cash for the entire purchase price of the land. 3. Building with a cost of $100 was purchased by issuing a long- term note payable. 4. A new patent was purchased for $80 of cash. No patents were disposed of during the year. Patents were properly amortized. 5. Amortization expense and depreciation expense is included in operating expenses. 6. Additional stock was issued for cash during the year 7. The company also continued to implement the Board approved repurchase plan. No treasury shares were reissued during the year. 8. Dividends were declared during the year. In Part a - Prepare a Statement of Cash flow (Indirect Method) In Part b - Prepare the Operating Section only using the Direct Method
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