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Comparative balance sheets: 2019 and 2020, an income statement for 2020 are provided below for Dandelions shop. Balance Sheet As of December 31 st Assets

Comparative balance sheets: 2019 and 2020, an income statement for 2020 are provided below for Dandelions shop.

Balance Sheet

As of December 31st

Assets

2020

2019

Cash

$1,550

$1,100

Account Receivable

550

1,200

Inventory

1,800

1,300

Investment Trading Securities

970

970

Fair Value Adjustment

70

0

Property Plant & Equipment

12,000

10,800

Accumulated Depreciation PPE

(4,650)

(5,400)

Goodwill

$400

$600

Total Assets

$12,690

$10,570

Liabilities

Accounts Payable

$200

$550

Accrued Wages

800

220

Convertible Bonds Payable

0

300

Bonds Payable

3,400

1,800

Discount on Bonds Payable

(10)

(12)

Total Liabilities

$4,390

$2,858

Stockholders Equity

Common Stock

4,300

3,100

Paid-in capital Common Stock

300

100

Retained Earnings

3,700

4,512

Total Liability & Stockholders Equity

$12,690

$10,570

Income Statement

During the Year Ended December 31st

Revenues

2020

Sales Revenue

$25,600

Dividend Revenue

110

Unrealized Holding Gain/Loss - Income

70

Total Net Sales

$25,780

Expenses

Cost of Goods Sold

$21,300

Operating Expenses

4,287

Interest Expense

45

Loss due to impairment of Goodwill

200

Loss on sale of Machinery

70

Total Expenses

25,902

Income Before Income Tax

(122)

Income Tax Expense

0

Net Income (Loss)

$ (122)

Additional Information from the 2020 accounting records:

  1. Dandelion owns a 10% of Acorn Inc. which is labeled as a Trading Security that increased in market value during 2020. Acorn gave out $1,100 worth of dividends to all of its owners during 2020.

  1. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Depreciation was calculated using the straight-line method and exactly 90% of its useful life was used up.

  1. $1,600 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash.
  1. Depreciation is included as part of Operating Expense.

  1. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock.

Instructions: Prepare the statement of cash flow under the indirect method. Your finished product should have all the information disclosed on a formal statement, including a list of noncash transactions.

***Please explain/show work how you got each amounts***

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