E23.15 (LO 2) (SCFIndirect Method) The following data are taken from the records of Alee Company.

Additional information: 1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2019, were sold in 2020

for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2020 for $8,000. The loss

was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $57,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash " E23.16 (LO 1, 2) (Cash Provided by Operating, Investing, and Financing Activities) The bal- ance sheet data of Brown Company at the end of 2020 and 2019 follow.

Brecker Inc. Income Statement For the Year Ending December 31, 2020

Sales revenue $338,150 Cost of goods sold 175,000 Gross pro! t

163,150 Operating expenses 120,000

Operating income 43,150

Interest expense $11,400

Gain on sale of equipment 2,000

9,400 Income before tax 33,750 Income tax expense 6,750

Net income

$ 27,000

ows using the direct method. (Do not prepare a reconciliation schedule.)

ows using the indirect method.

December 31, December 31,

2020

2019

Cash $ 15,000

$ 8,000

Current assets other than cash 85,000

60,000

Long-term debt investments 10,000

53,000

Plant assets

Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings

ows for the year 2020 using the indirect method.

335,000 $445,000

$ 20,000 40,000 75,000 254,000 56,000 $445,000

215,000 $336,000

$ 40,000 22,000 0 254,000 20,000 $336,000