I need help with this, it's a whole problem in three pages and I keep getting stuck on it.

Chapter 13 - Statement of Cash Flows 1. The following financial statement data is available for Riverdale Company for Dec 31, 2020. (30 pts) Comparative Balance Sheet Data S 2019 4,000 12,950 35,000 12.000 900 2020 Cash $ 39,835 Accounts Receivable 17,500 Dividends Receivable 1,000 Inventory 42.000 Prepaid rent 3,000 Prepaid insurance 2,100 Office supplies 1,000 Long-term investments 20.000 Land 125,000 Building 350,000 Accumulated depreciation, Building (105,000) Equipment 525,000 Accumulated depreciation, Equipment (130,000) Patent 45.000 Total assets $ 936,435 750 30,000 175,000 350,000 (87500) 400,000 (112,000) - 50.000 S 871,100 $ 26,000 5,00D 5,000 10,000 $30,000 4,000 3,000 10,000 1.500 500 Accounts payable Income taxes payable Wages payable Short-term notes payable Dividends payable Unearned Income Accrued Liabilities Long-term notes payable Bonds payable Common stock (510 par) Paid-in capital in excess of par Retained earnings Treasury Stock Total liabilities and equity 5,303 60,000 415.000 290,000 46,410 106,722 (35.000 936,435 2,000 10,853 70,000 415,000 220,000 17,500 88,747 $ 871,100 Income Statement $1,160.000 ( 741.000 412.000 226,400) 135,600 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Other revenues/expense Gain on sale of land Gain on sale of long-term investment Dividend revenue Interest expense Income before taxes Income tax expense Net income 8,000 4,000 2,400 (51.7501 1 37.350) 98,250 39,40,00 58,850 ( Instructions: Prepare a statement of cash flows in proper form for 20/20 using the Indirect method. Then, redo the Operating Section only using the Direct method. In this exercise, follow these steps: Create a Comparative Balance Sheet where you compute the dollar change in every account on the Balance Sheet. Label each item on the Balance Sheet as being Operating Investing, or Financing. This is extremely important because then you know where each item belongs on the Cash Flow Statement. Don't bother labeling Cash or Retained Earnings because these are affected by all three activities 0 For the Operating Section (Indirect Method: Start with Net Income Add Depreciation and/or Amortization Expense Adjust out anything included in Net Income that belongs in the Investing or Financing section - Add or subtract accordingly all items you labeled as an Operating activity from the Balance Sheet 0 For the Investing and Financing Sections: Use T-Accounts for each account to help you solve for the correct amounts: start with beginning balance on the correct side: include what you know including ending balance; figure out what else needed to happen in order to get the ending balance. Lise journal entries (if appropriate) to help you visualize a transaction and its effect for not) on cash Be sure to account for all changes in the balance sheet and to reconcile those to the appropriate section of the cash flow statement. For the Operating Section Direct Method) - You are starting with Sales, adjusting it for cash received from customers, then going directly down the Income Statement and doing the same with each item on the Income Statement(see Chapter 13 Appendix). You will end up with the same answer for Operating Cash Flow as derived using the Indirect Approach Be sure to consider all items labeled Operating in your Comparative Balance Sheet. - You will have several items to adjust that will be slightly different than what is provided in the book. You will be expected to use your best judgment on these. Other Important Information Affecting Investing and/or Financing Activities There are no non-cash transactions affecting investing activities. The only sales of assets are the ones reflected on the income statement Make journal entries, including accounting equation impact, for the following transactions (this will be part of your grade): On April 1, 2020, the company paid $14 per share for Treasury Shares. To remember how this affected financial position, review this in Chapter 12 o On Sept. 1. 2020, the company declared and issued a 5% stock dividend on outstanding shares when the market price of the stock was $17. To remember how this impacts financial position, review this in Chapter 12. All other transactions affecting Contributed Capital and Retained Earnings occurred after Sept. 1, 2020. . There were no prior period adjustments Chapter 13 - Statement of Cash Flows 1. The following financial statement data is available for Riverdale Company for Dec 31, 2020. (30 pts) Comparative Balance Sheet Data S 2019 4,000 12,950 35,000 12.000 900 2020 Cash $ 39,835 Accounts Receivable 17,500 Dividends Receivable 1,000 Inventory 42.000 Prepaid rent 3,000 Prepaid insurance 2,100 Office supplies 1,000 Long-term investments 20.000 Land 125,000 Building 350,000 Accumulated depreciation, Building (105,000) Equipment 525,000 Accumulated depreciation, Equipment (130,000) Patent 45.000 Total assets $ 936,435 750 30,000 175,000 350,000 (87500) 400,000 (112,000) - 50.000 S 871,100 $ 26,000 5,00D 5,000 10,000 $30,000 4,000 3,000 10,000 1.500 500 Accounts payable Income taxes payable Wages payable Short-term notes payable Dividends payable Unearned Income Accrued Liabilities Long-term notes payable Bonds payable Common stock (510 par) Paid-in capital in excess of par Retained earnings Treasury Stock Total liabilities and equity 5,303 60,000 415.000 290,000 46,410 106,722 (35.000 936,435 2,000 10,853 70,000 415,000 220,000 17,500 88,747 $ 871,100 Income Statement $1,160.000 ( 741.000 412.000 226,400) 135,600 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Other revenues/expense Gain on sale of land Gain on sale of long-term investment Dividend revenue Interest expense Income before taxes Income tax expense Net income 8,000 4,000 2,400 (51.7501 1 37.350) 98,250 39,40,00 58,850 ( Instructions: Prepare a statement of cash flows in proper form for 20/20 using the Indirect method. Then, redo the Operating Section only using the Direct method. In this exercise, follow these steps: Create a Comparative Balance Sheet where you compute the dollar change in every account on the Balance Sheet. Label each item on the Balance Sheet as being Operating Investing, or Financing. This is extremely important because then you know where each item belongs on the Cash Flow Statement. Don't bother labeling Cash or Retained Earnings because these are affected by all three activities 0 For the Operating Section (Indirect Method: Start with Net Income Add Depreciation and/or Amortization Expense Adjust out anything included in Net Income that belongs in the Investing or Financing section - Add or subtract accordingly all items you labeled as an Operating activity from the Balance Sheet 0 For the Investing and Financing Sections: Use T-Accounts for each account to help you solve for the correct amounts: start with beginning balance on the correct side: include what you know including ending balance; figure out what else needed to happen in order to get the ending balance. Lise journal entries (if appropriate) to help you visualize a transaction and its effect for not) on cash Be sure to account for all changes in the balance sheet and to reconcile those to the appropriate section of the cash flow statement. For the Operating Section Direct Method) - You are starting with Sales, adjusting it for cash received from customers, then going directly down the Income Statement and doing the same with each item on the Income Statement(see Chapter 13 Appendix). You will end up with the same answer for Operating Cash Flow as derived using the Indirect Approach Be sure to consider all items labeled Operating in your Comparative Balance Sheet. - You will have several items to adjust that will be slightly different than what is provided in the book. You will be expected to use your best judgment on these. Other Important Information Affecting Investing and/or Financing Activities There are no non-cash transactions affecting investing activities. The only sales of assets are the ones reflected on the income statement Make journal entries, including accounting equation impact, for the following transactions (this will be part of your grade): On April 1, 2020, the company paid $14 per share for Treasury Shares. To remember how this affected financial position, review this in Chapter 12 o On Sept. 1. 2020, the company declared and issued a 5% stock dividend on outstanding shares when the market price of the stock was $17. To remember how this impacts financial position, review this in Chapter 12. All other transactions affecting Contributed Capital and Retained Earnings occurred after Sept. 1, 2020. . There were no prior period adjustments