Headland Company had the following Information available at the end of 2020. HEADLANDCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $10,030 $4030 Accounts receivable 20.580 12.850 Short-term investments 22.130 29,700 Inventory 41,810 34,700 Prepaid rent 3.020 12.090 Prepaid insurance 2.110 91 Supplies 1.000 74 Land 125.160 176,690 Buildings 349,890 349.890 Accumulated depreciation-buildings (104,810) (87.100 Equipment 524,900 397,700 Accumulated depreciation-equipment (129,880) (112.640) Patents 45,200 49.700 Total assets $911.140 $867.775 Accounts payable $21,860 $31.980 Income taxes payable 4,960 4,010 Salaries and wages payable 4,990 3,000 Short-term notes payable 9,950 9.950 Long-term notes payable 60.050 69,870 Bonds payable 396,520 396,520 Premium on bonds payable 24,050 24,345 Common stock 241.260 221,400 Paid-in capital in excess of par-common stock 24,750 17.450 Retained earnings 122.750 89.250 Total liabilities and stockholders' equity $911,140 $867,775 HEADLAND COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $1,165,680 Cost of goods sold 743,390 422.290 Gross margin Operating expenses Selling expenses $79,430 Administrative expenses 156,850 Depreciation/Amortization expense 39,450 Total operating expenses 275,730 Income from operations 146,560 Other revenues/expenses Gain on sale of land 8,040 Gain on sale of short-term investment 3.960 Dividend revenue 2.410 Interest expense (51.270) (36,860) Income before taxes 109,700 Income tax expense 39.390 Net income 70,310 Dividends to common stockholders (36,810) To retained earnings $33,500 Prepare a statement of cash flows for Headland Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - signes. -15,000 or in parenthesis es (15,000).) HEADLAND COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash receipts: Cash Received from Customers Dividends Received Cash payments: Cash Paid to Suppliers Cash Paid for Operating Expenses Cash Paid for Taxes Cash Paid for interest DOO DODO Net Cash Provided by Operatine Activities Cash Flows from Investing Activities Sale of Short term Investments Sale of Land Purchase of Equioment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Proceeds from Issuance of Common Stock Microsof Principal Payment on Long-term Debt Dividends Paid Net Cach Used by Financing Activities Net Increase in Cash bhab Cash. January 1, 2020 Cash, December 31, 2020 (Show amounts that decrease cash flow with either a- signes -15,000 or in parenthesis es (15,0001) Reconciliation Schedule Reconciliation of Net Income to $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation/Amortization Expense Increase in Prepaid Rent Increase in Income Taxes Povable Increase in Salaries and Wages Payable Increase in Accounts Receivable ddddddddd Increase in Inventory Increase in Prepaid Insurance Increase in Supplies Decrease in Accounts Payable Ginon Sale of Land Gain on Sale of Short-term Investments Amortization of Bond Premium Total Adjustments II Net Cash Used by Operating Activities
