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Condensed financial data of Pronghorn Company for 2020 and 2019 are presented below. Cash Receivables Inventory PRONGHORN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,
Condensed financial data of Pronghorn Company for 2020 and 2019 are presented below. Cash Receivables Inventory PRONGHORN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 $1,770 $1,170 1,780 1,300 1,570 1,880 1,870 1,710 Plant assets Accumulated depreciation (1,210) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 PRONGHORN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820. Cost of goods sold 4,640 Gross margin 2.180 Selling and administrative expenses 910 PRONGHORN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 13 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Net income Cash dividends 260 Income retained in business $540 B Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. 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).) Cash Flows from Operating Activities Adjustments to reconcile net income to + +A > 6340 Issuance of Common Stock for Plant Assets 12 Issuance of Common Stock for Plant Assets Sale of Bonds Payable Cash Flows from Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets
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