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Comparative balance sheet accounts of Kingbird Company are presented below. KINGBIRD COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 Cash $69,900
Comparative balance sheet accounts of Kingbird Company are presented below. KINGBIRD COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 Cash $69,900 Accounts Receivable 155,500 Inventory 75,200 Debt investments (available-for-sale) 55,500 Equipment 70,600 Buildings 144,500 Land 40,200 Totals $611,400 2019 $51,400 129,400 60,400 84,500 48,200 144,500 25,000 $543,400 Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings Totals $9,900 20,800 36,700 65,800 12,100 62,000 310,000 94,100 $611,400 $7.900 13,900 28,200 59,700 10,000 70,000 260,000 93,700 $543,400 Additional data: 1. Equipment that cost $9,900 and was 60% depreciated was sold in 2020. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $34,600 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Kingbird's 2020 income statement is as follows. $955,200 601,100 354,100 250,300 103,800 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $15,100 (3,000 ) 12,100 115,900 45,400 $70,500 (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities s (b) 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).) KINGBIRD COMPANY Statement of Cash Flows Adjustments to reconcile net income to
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