CROMMER INC. Spreadsheet (Work Shoot) for Statement of Cash Flows For the Year Ended December 31, 2020 Balance, Transactions Dec 31, 2019 Debit 585,920 208,960 617,120 240,000 Credit Balance, Dec. 31, 2020 625,760 227,840 641,760 553,120 (148,000) (404,960) (52,640) (19,200) (100,000) (280,000) (1.200,320) 328,000 705,120 (166,400) (424,480) (42,240) (24,000) (150,000) (417,500) (1,303,860) Cash Accounts receivable (net) Inventories Investments Land Equipment Accum depr. - equipment Accounts payable Accrued expenses payable Dividends payable Common stock, $2 par Pald-in capital in excess of par Retained eamings Totals Operating activities: Net income Depreciation Gain on sale of investments Increase in accounts recevable Increase in Inventories Increase in accounts payable Decrease in accrued expenses payable Investing activities: Purchase of equipment Purchase of land Sale of investments Financing activities: Declaration of cash dividends Sale of common stock Increase in dividends payable Net Increase in cash Totals IN Instructions 1. The Investments were sold for $280,000 cash. 2 Equipment and land were acquired for cash 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash 5. There was a $199,540 credit to Retained Earnings for Net Income. 6. There was a $96,000 debit to Retained Earnings for Dividends Declared. Prepare a statement of cash flows using the Indirect method. CROMMER INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on Gain on sale of investments Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year