Question
Denver, Inc. has prepared the following comparative balance sheets for 20x0 and 20x1: 20x1 20x0 Cash 75,000 51,000 A/R 48,000 39,000 Inventory 54,000 60,000 Prepaid
Denver, Inc. has prepared the following comparative balance sheets for 20x0 and 20x1:
20x1 20x0
Cash 75,000 51,000 A/R 48,000 39,000 Inventory 54,000 60,000 Prepaid Expense 6,000 9,000 Building 440,000 350,000 Accum. Depr. (145,000) (125,000) Copyright 51,000 58,000 A/P 51,000 56,000 Accrued Liabilities 18,000 14,000 Mortgage Payable - 150,000 Preferred Stock 175,000 - APIC Pref. 30,000 - Common Stock 200,000 200,000 R/E 55,000 22,000
- The R/E account has been charged for dividends of $54,000 and credited for the net income for the year.
- The income statement for 20x1 is as follows:
Sales 660,000 Cost of sales 363,000 Gross profit 297,000 Operating expenses 210,000 Net income 87,000
From the information above, prepare a statement of cash flows for the year ended December 31, 20x1 (use the indirect method for operating activities). Make sure to prepare all activities.
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