Here are comparative balance sheets for Kingbird Company. Prepare a statement of cash flowsindirect method. KINGBIRD COMPANY
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Question:
Here are comparative balance sheets for Kingbird Company. Prepare a statement of cash flows—indirect method.
KINGBIRD COMPANY | ||||
---|---|---|---|---|
Assets | 2020 | 2019 | ||
Cash | $72,000 | $22,000 | ||
Accounts receivable | 88,000 | 75,000 | ||
Inventory | 171,000 | 188,000 | ||
Land | 71,000 | 99,000 | ||
Equipment | 260,000 | 197,000 | ||
Accumulated depreciation - equipment | (67,000) | (32,000) | ||
Total | $595,000 | $549,000 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable | $37,000 | $47,000 | ||
Bonds payable | 149,000 | 208,000 | ||
Common stock ($1 par) | 212,000 | 171,000 | ||
Retained earnings | 197,000 | 123,000 | ||
Total | $595,000 | $549,000 |
Additional information:
1. | Net income for 2020 was $102,000. | |
2. | Cash dividends of $28,000 were declared and paid. | |
3. | Bonds payable amounting to $59,000 were redeemed for cash $59,000. | |
4. | Common stock was issued for $41,000 cash. | |
5. | Equipment that cost $49,000 and had a book value of $29,000 was sold for $38,000 during 2020; land was sold at cost. |
(a)
Prepare a statement of cash flows for 2020 using the indirect method.
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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