Question
Here are comparative balance sheets for Velo Company. Velo Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,700 $33,400 Accounts receivable 86,300 71,100
Here are comparative balance sheets for Velo Company. Velo Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,700 $33,400 Accounts receivable 86,300 71,100 Inventory 169,700 187,500 Land 72,200 101,400 Equipment 260,400 199,300 Accumulated depreciationequipment (65,700 ) (34,300 ) Total $595,600 $558,400 Liabilities and Stockholders Equity Accounts payable $35,500 $47,500 Bonds payable 148,300 203,300 Common stock ($1 par) 217,500 172,500 Retained earnings 194,300 135,100 Total $595,600 $558,400 Additional information: 1. Net income for 2020 was $104,100. 2. Cash dividends of $44,900 were declared and paid. 3. Bonds payable amounting to $55,000 were redeemed for cash $55,000. 4. Common stock was issued for $45,000 cash. 5. No equipment was sold during 2020, but land was sold at cost. 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).) Velo Company Statement of Cash Flows $ Adjustments to reconcile net income to $ $
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