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December 31 2020 2019 Cash $33,800 $13,100 Accounts receivable 12,100 9,900 Inventory 12,000 8,900 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,700 Equipment 44,500 19,800
December 31 2020 2019 Cash $33,800 $13,100 Accounts receivable 12,100 9,900 Inventory 12,000 8,900 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,700 Equipment 44,500 19,800 Patents 5,100 6,200 $107,500 $90,600 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -0- 6,100 Accounts payable 5,100 3,000 Dividends payable -0- 4,900 Notes payable, short-term (nontrade) 3,000 3,900 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,300 5,700 $107,500 $90,600 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $4,900. 4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes). 5. Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,500 were paid in cash. 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).) CULVER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 19500 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 1940 Gain on Sale of Investments - 1700 Loss from Flood Damage 6700 Loss on Sale of Equipment 4160 Increase in Accounts Receivable (Net) -2200 Increase in Inventory -3100 Patent Amortization 4 1100 - 1400 2100 4 4 $ Supplemental disclosures of cash flow information: $ a $ Supplemental disclosures of cash flow information: $ $ $ $
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