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From the information, prepare a statement of cash flows using the indirect method. The Balance Sheets for Perez, Inc. for the years ending December 31,
From the information, prepare a statement of cash flows using the indirect method.
The Balance Sheets for Perez, Inc. for the years ending December 31, 2020 and 2019 are shown below. Dec. 31, 2020 Dec 31, 2019 Cash 77,500 29,700 Accounts Receivable 43,000 40,500 Alowance for Doubtful Amounts (1,900) (2 200) Prepaid expenses 4,200 4,600 Inventories 70,500 58,800 Land 50,000 50,000 Buildings 150,000 150,000 Accumulated Depreciation - buildings (12,500) (7,500) Equipment 74,000 74,000 Accumulated depreciation - equipment (48,500) (35,500) Delivery equipment 22,000 29,000 Accumulated depreciation - delivery equip. (8,000) (20,500) Patents 12,500 25,000 432,800 395.900 Dec 31, 2019 29,000 5.900 115,000 0 Accounts payable Accrued liabilities Mortgage payable Bonds payable Premium on Bonds Common Stock (S1PV) Additional paid-in capital Retained earnings Less: Treasury Stock Dec 31, 2020 26,000 7,000 97,360 100,000 4,000 55,000 77.500 85,940 (20,000) 432.800 50.000 67,500 128,500 0 395.900 The income statement for 2020 is as follows: Sales Cost of sales Gross profit Operating expenses Loss Gain Net income (Loss) 728,500 (528.760) 199,740 (173,500) (800) 2.000 27.440 1. On January 1, 2020 Perez, Inc, declared and distributed a 10% stock dividend when the FMV was $3.00 sh. 2. On December 1, 2020 cash dividends of $1 per share were declared and paid. 3. Delivery equipment which cost $20,000 and book value of $2,000 was sold for $1,200. 4. Sold $10,000 patents for $12,000 cash 5. Issued Bonds on December 31, 2020 6. Purchased new delivery equipment
From the information, prepare a statement of cash flows using the indirect method.
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