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Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020
Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $73,000 $23,000 Accounts receivable 89,000 76,000 Inventories 170,000 189,000 Land 71,000 101,000 Equipment 260,000 198,000 Accumulated depreciation (66,000 ) (29,000) Total $597,000 $558,000 Liabilities and Stockholders' Equity Accounts payable $41,000 $43,000 Bonds payable 151,000 209,000 Common stock ($1 par) 215,000 173,000 Retained earnings 190,000 133,000 Total $597,000 $558,000 Additional information: 1. Net income for 2020 was $87,000. 2. Cash dividends of $30,000 were declared and paid. 3. Bonds payable amounting to $58,000 were redeemed for cash $58,000. 4. Common stock was issued for $42,000 cash. 5. Equipment that cost $45,000 and had a book value of $27,000 was sold for $33,000 during 2020; land was sold at cost.
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