indirect cash flow statement

COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 Cash $1,770 Receivables 1.780 Inventory 1,570 Plant assets 1,870 Accumulated depreciation (1.210) Long-term investments (held-to-maturity) 1.290 $7,070 2019 $1,170 1,300 1,880 1.710 (1.190) 1,430 $6,300 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1.200 200 1,430 1.860 2.380 $7,070 $900 250 1,580 1,730 1,840 $6,300 2.180 910 SHAMROCK COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin Selling and administrative expenses Income from operations 1,270 Other revenues and gains Gain on sale of investments Income before tax 1.350 Income tax expense 550 Net income Cash dividends 260 Income retained in business $540 80 800 Additional information: During the year. $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 800 Depreciation Expense S Increase in Accounts Receivable -480 Decrease in Inventory 310 Increase in Accounts Payable 300 Decrease in Accrued Liabilitles -50 100 Net Cash Provided by Operating Activitles 900 Cash Flows from investing Actitles Purchase of Plant Assets Sale of Investments 140 Net Cash Provided by Investing Activities 60 Cash Flows from Financing Activities Payment of Cash Dividends -260 Redemption of Bonds Payable - 150 Lesuance of Capital Stock 50 Net Cash Provided by Financing Activities -360 Net Increase in Cash 600 >