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Financial statements for Bernard Corp. are presented below: BERNARD CORP. Statement of Financial Position January 1, 2020 Assets Cash $160,000 Accounts receivable 144,000 Buildings and
Financial statements for Bernard Corp. are presented below:
BERNARD CORP. | ||||
Statement of Financial Position | ||||
January 1, 2020 | ||||
Assets | ||||
Cash | $160,000 | |||
Accounts receivable | 144,000 | |||
Buildings and equipment | 600,000 | |||
Accumulated depreciationbuildings and equipment | (200,000) | |||
Patents | 72,000 | |||
Total Assets | $776,000 | |||
Liabilities and Equity | ||||
Accounts payable | $ 76,000 | |||
Common shares | 460,000 | |||
Retained earnings | 240,000 | |||
Total Liabilities & Shareholders Equity | $776,000 | |||
BERNARD CORP. | ||||
Statement of Cash Flows (indirect method) | ||||
Year ended December 31, 2020 | ||||
Cash provided by operating activities | ||||
Net income | $200,000 | |||
Add back non-cash expenses: | ||||
Increase in accounts receivable | $ (64,000) | |||
Increase in accounts payable | 32,000 | |||
Depreciation expense | 60,000 | |||
Gain on disposal of equipment | (24,000) | |||
Amortization of patents | 8,000 | 12,000 | ||
Cash provided by operating activities | 212,000 | |||
Cash provided by (used in) investing activities | ||||
Sale of equipment | 48,000 | |||
Purchase of land | (100,000) | |||
Purchase of buildings and equipment | (192,000) | |||
Cash used by investing activities | (244,000) | |||
Cash provided by financing activities | ||||
Payment of cash dividends | (60,000) | |||
Issuance of common shares | 160,000 | |||
Cash provided by financing activities | 100,000 | |||
Net increase in cash | 68,000 | |||
Cash, January 1, 2020 | 160,000 | |||
Cash, December 31, 2020 | $228,000 |
Total assets on the December 31, 2020 statement of financial position were $1,108,000. Accumulated depreciation on the equipment sold was $56,000. When the equipment was sold, the Buildings and Equipment account was credited with
$80,000.
$104,000.
$56,000.
$48,000.
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