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Condensed financial data of Skysong Company for 2025 and 2024 are presented below. Skysong Company Comparative Balance Sheet As of December 31, 2025 and
Condensed financial data of Skysong Company for 2025 and 2024 are presented below. Skysong Company Comparative Balance Sheet As of December 31, 2025 and 2024 2025 2024 Cash $1,830 $1,180 Receivables Inventory 1,710 1,320 1,590 1,920 Plant assets 1,890 1,710 Accumulated depreciation (1,220) (1,190) Long-term investments (held-to-maturity) 1,320 1,440 $7,120 $6,380 Accounts payable $1,190 $890 Accrued liabilities 210 260 Bonds payable 1,400 1,580 Common stock 1,940 1,660 Retained earnings 2,380 1,990 $7,120 $6,380 Skysong Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,720 Cost of goods sold 4,680 Gross margin 2,040 Selling and administrative expense 920 Income from operations 1,120 Other revenues and gains Gain on sale of investments 80 Income before tax 1,200 Income tax expense 550 Net income 650 Cash dividends 260 Income retained in business $390 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2025. Additional Information: During the year, $70 of common stock was laued in exchange for plant assets. No plant ass were sold in 2025. Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis eg. (15,000)) Adjustments to reconcile net income to SKYSONG COMPANY STATEMENT OF CASH FLOWS (Indirect Method)
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