*Do It! Review 17-02 b Alex Company reported the following information for 2020. Alex Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment $59,000 $36,000 62,000 22,000 44,000 -0- 6,000 4,000 55,000 70,000 200,000 200,000 (21,000) (14,000) 183,000 68,000 (28,000) (10,000) $560,000 $376,000 Change Increase/Decrease $23,000 Increase 40,000 Increase 44,000 Increase 2,000 Increase 15,000 Decrease -0- 7,000 Increase 115,000 Increase 18,000 Increase Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals $43,000 $40,000 -0- 10,000 100,000 150,000 230,000 60,000 187,000 116,000 $560,000 $376,000 $3,000 10,000 50,000 170,000 71,000 Increase Decrease Decrease Increase Increase Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $941,000 Cost of goods sold $475,000 Operating expenses 231,000 Interest expense 12,000 Loss on disposal of plant assets 2,000 720,000 DO Net Income $156,000 Additional Information! 1. Operating expenses include depreciation expense of $40,000. 2. Land was sold at its book value for cash. 3. Cash dividends of $85,000 were declared and paid in 2020. 4. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $51,000 and a book value of $36,000 was sold for $34,000 cash. 5. Bonds of $50,000 were redeemed at their face value for cash. 6. Common stock ($1 par) of $170,000 was issued for cash. Use this information to Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with other sign .g. ALEX COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to 7 7