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Condensed financial data of Sandhill Corp. for 2020 and 2019 are presented below. SANDHILL CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Sandhill Corp. for 2020 and 2019 are presented below. SANDHILL CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $780 $610 Investments 0 200 Receivables 2,320 2,030 Inventory 1,600 1,220 Plant assets 1,480 1,220 Accumulated depreciation (590) (430) $5,590 $4,850 Accounts payable $750 $1,170 Accrued liabilities 330 550 Bonds payable 800 950 Capital stock 1,540 1,440 Retained earnings 2,170 740 $5,590 $4,850 SANDHILL CORP. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales $15,000 Cost of goods sold 10,400 Gross margin 4,600 Selling and administrative expenses 1,200 Income from operations 3,400 Other revenues and gains Loss on sale of investments 50 Income before tax 3,350 Income tax expense 1,340 Net income 2,010 Cash dividends 580 Income retained in business $1,430 Additional information: During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SANDHILL CORP. Statement of Cash Flows (Direct Method)
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