Donnelly, Inc has prepared the following comparative balance sheets for 2019 and 2020 2019 Change 2020 Cash $ 157,000 140,000 dr $ 297,000 Receivables 117,000 42,000 dr 159,000 Inventory 160,000 10,000 cr 150,000 Prepaid expenses 33,000 9,000 cr 24,000 Plant assets 1,238,000 169,000 dr 1,407,000 Accumulated depreciation (375,000) 75,000 cr (450,000) Totals $1,330,000 $1,587,000 2019 Change 2020 Accounts payable $ 168,000 15,000 dr $ 153,000 Accrued liabilities 42,000 18,000 cr 60,000 Bonds payable 450,000 450,000 dr 0 Preferred stock 0 525,000 cr 525,000 Additional paid in capitalpreferred stock 0 120,000 cr 120,000 Common stock 600,000 no change 600,000 Retained earnings 70,000 59,000 cr 129,000 Totals $1,330,000 $1,587,000 Additional Information There were no sales of plant assets, and all purchases of plant assets were paid with cash Depreciation expense was $75,000 The preferred stock was issued for cash, and the bonds payable were retired by paying cash Cash dividends totaling $131,000 were declared and paid during the year All accounts payable relate to inventory purchases all accrued liabilities and prepaid expenses relate to operating expenses Donnellys income statement for 2020 is as follows Sales $1,980,000 Cost of goods sold 1,100,000 Gross profit 880,000 Operating expenses (including depreciation) 690,000 Net income $ 190,000 Required Using the information above, prepare a statement of cash flows for Donnelly, Inc for the year ended December 31, 2020 Use the indirect approach (the reconciliation approach) to compute cash flow from operating activities

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Donnelly, Inc. has prepared the following comparative balance sheets for 2019 and 2020. 2019 Change 2020 Cash .......................................................... $ 157,000 ............... 140,000 dr. ..... $

Donnelly, Inc. has prepared the following comparative balance sheets for 2019 and 2020.

2019 Change 2020

Cash .......................................................... $ 157,000 ............... 140,000 dr. ..... $ 297,000

Receivables ................................................... 117,000 ................. 42,000 dr. ......... 159,000

Inventory ...................................................... 160,000 ................. 10,000 cr. ......... 150,000

Prepaid expenses ............................................ 33,000 ................... 9,000 cr. ........... 24,000

Plant assets ................................................. 1,238,000 ............... 169,000 dr. ...... 1,407,000

Accumulated depreciation ........................... (375,000) ................ 75,000 cr. ....... (450,000)

Totals $1,330,000 $1,587,000

2019 Change 2020

Accounts payable ...................................... $ 168,000 ................. 15,000 dr. ..... $ 153,000

Accrued liabilities ............................................ 42,000 ................. 18,000 cr. ........... 60,000 Bonds payable ............................................... 450,000 ............... 450,000 dr. .................... 0

Preferred stock......................................................... 0 ............... 525,000 cr. ......... 525,000

Additional paid-in capitalpreferred stock .............. 0 ............... 120,000 cr. ......... 120,000

Common stock .............................................. 600,000 ............ no change ............... 600,000

Retained earnings ..................................... 70,000 ................. 59,000 cr. ..... 129,000 Totals $1,330,000 $1,587,000

Additional Information:

There were no sales of plant assets, and all purchases of plant assets were paid with cash.
Depreciation expense was $75,000.
The preferred stock was issued for cash, and the bonds payable were retired by paying cash.
Cash dividends totaling $131,000 were declared and paid during the year.
All accounts payable relate to inventory purchases; all accrued liabilities and prepaid expenses relate to operating expenses.

Donnellys income statement for 2020 is as follows:

Sales ........................................................................ $1,980,000 Cost of goods sold .................................................. 1,100,000

Gross profit.............................................................. 880,000 Operating expenses (including depreciation) ........... 690,000

Net income .............................................................. $ 190,000

Required:

Using the information above, prepare a statement of cash flows for Donnelly, Inc. for the year ended December 31, 2020. Use the indirect approach (the reconciliation approach) to compute cash flow from operating activities.