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 Cash $73,000 Accounts receivable 86,000 Inventories 171,000 Land 73,000 Equipment 257,000 Accumulated depreciation (66,000) Total $594,000 Liabilities and Stockholders' Equity Accounts payable $37,000 Bonds payable 148.000 Common stock ($1 par) 215,000 Retained earnings 194,000 Total $594,000 2019 $22,000 78,000 193.000 99,000 202.000 (30,000) $564,000 $46,000 209,000 172,000 137,000 $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. (a) Your answer is partially correct. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MIGITSU COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Question 11 of 14 6.57 / 23 MIGITSU COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 88000 Adjustments to reconcile net income to Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable Net Cash Provided by Operating Activities Question 11 of 14 6.57 12 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment 35600 Sale of Land 28000 Purchase of Equipment 111000 Net Cash Used by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock 43000 Redemption of Bonds 61000 Payment of Cash Dividends 31000 Net Cash Used by Financing Activities Not Incmnen in rach. Question 11 of 14 6.57/23 TUTUSTURVIETTES SI Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period $ eTextbook and Media Save for Later Attempts: 1 of 4 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above