Comparative balance sheets for International Company represented as follows International Company Comparative Balance Sheets December 31 Assets 2020 Cash 573.000 Accounts receivable 85.000 Inventory 180.000 Land 75.000 Equipment 250.000 Accumulated depreciation-equipment 166.000 Total $597000 Liabilities and Stockholders' Equity Accounts payable $34000 Bonds payable 150.000 Common stock ($1 par) 214.00 Retained earnings 199.000 Total $597.000 2019 $22.000 76.000 189.000 100.000 200.000 142.000 5545.000 $47.000 200.000 164.000 134000 5545.000 Additional information: 1 Net income for 2020 was $135.000 Cash dividends of S70.000 were declared and paid Bonds payable amounting to $50,000 were redeemed for cash $50.000 Common stock was issued for $50,000 cash Depreciation expense was $24.000 Sales revenue for the year was 5978.000 7 Land was sold at cost and equipment was purchased for cash 2 3 5 Prepare a worksheet for a statement of cash flows for 2020 using the indirect method. Enter the reconciling items directly on the worksheet (Show amounts that decrease cash flow with either o-signes -15.000 or in parenthesis es (15.0000 International Company Worksheet Statement of Cash Flows For the Year Ended December 31, 2020 Reconciling Balance 12/31/19 Debit Balance Sheet Accounts Debits Cash Accounts receivable Inventory land International Company Worksheet Statement of Cash Flows For the Year Ended December 31, 2020 Reconciling Balance 12/31/19 Debit Balance Sheet Accounts Debits Cash Accounts receivable terventory Land Equipment Total Credits Accumulated depreciation-equipment Accounts payable TITLE Bonds payable Common stock Retained earnings Total Statement of Cash Flow Effects Operating Activities Net Income Depreciation Expense 24,000 Increase in Accounts Receivable 9.000 Decrease inventory 9.000 Decrease in Accounts Paya de -13.000 Jovesting Activities Purchase of Land 25.000 Purchase of Equipment -50.000 Financing Activities hance of Common Stock Payment of Dividends 70,000 Credits Accumulated depreciation-equipment Accounts payable Bonds payable Common stock Retained earnings Total Statement of Cash Flow Effects Operating Activities Net Income Depreciation Expense 24000 -9.000 9.000 -13.000 25.000 Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable Investing Activities Purchase of Land Purchase of Equipment Financing Activities Issuance of Common Stock Payment of Dividends Redemption of Bonds Totals -50,000 50,000 70,000 -50,000 Increase in Cash Totals For the Year Ended December 313020 Reconciling item 31/19 Debit Credit Balance 12/31/20 24.000 9,000 9.000 -13 000 11000 25.000 50.000 50.000 70.000 50.000 50000 Q o 1155 AM 135.000 24.000 9.000 9,000 -13.000 11.000 25.000 -50,000 50,000 -70,000 -50,000 51,000 22.000 73,000
