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Discover Corporation reported the following balance sheet data for 2020 and 2019: Cash Available-for-sale debt security (not cash equivalents) 2020 $77,375 2019 $22,955 15,500
Discover Corporation reported the following balance sheet data for 2020 and 2019: Cash Available-for-sale debt security (not cash equivalents) 2020 $77,375 2019 $22,955 15,500 85,000 Account receivables 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 Accumulated depreciation (610,000) (572,000) Total Assets $979.375 $876,205 Accounts payable Salaries payable $76,340 $148,670 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds Payable 200,000 0 Common Stock 300,000 300,000 Retain Earnings 358,035 328,035 Total liabilities and shareholders' equity $979.375 $876,205 Additional information for year 2020: 1) Sold available-for-sale debt securities costing $69,500 for $74,000. 2) Equipment costing $20,000 with book value of $5,000 was sold for $6,000. 3) Issued 6% bonds payable at face value, $200,000. 4) Purchase new equipment for $145,000 cash. 5) Paid cash dividends of $20,000. 6) Net income was $50,000 Required: Prepare a statement of cash flows for 2020 in good form using the indirect method for cash flows from operating activities.
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