Question
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 $22,000 Accounts receivable 86,000 78,000 Inventories 171,000 193,000 Land 73,000 99,000 Equipment 257,000 202,000 Accumulated depreciation (66,000) (30,000 ) Total $594,000 $564,000 Liabilities and Stockholders' Equity Accounts payable $37,000 $46,000 Bonds payable 148,000 209,000 Common stock ($1 par) 215,000 172,000 Retained earnings 194,000 137,000 Total $594,000 $564,000 Additional information: 1. Net income for 2020 was $88,000. 2. Cash dividends of $31,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $43,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $37,000 during 2020; land was sold at cost.
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