indirect method

lestion 5 OT 13 AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6,900 Accounts receivable 62,500 51,000 Short-term debt investments (available-for-sale) 34,800 18,100 Inventory 39,600 60,200 Prepaid rent 4.900 4,000 154,500 130,100 Equipment Accumulated depreciation-equipment (34.800) (25,300) Copyrights 46,300 50,400 Total assets $313.900 $295,400 $46,000 $40,200 4,000 6,000 8,100 4,000 8,000 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock $10 par Contributed capital.common stock Retained earnings 10,000 59.700 69,000 100,000 100,000 30,000 30.000 58.100 36.200 Total liabilities & stockholders'equity $313.900 $295,400 -/1 E SPLISH INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,075 Cost of goods sold 175.000 Gross profit 164.075 Operating expenses 119.900 Operating income 44,175 Interest expense $11.300 Gain on sale of equipment 9.300 Income before tax 34,875 Income tax expense 6,975 Net income $27.900 2000 Additional information: 1 2 Dividends in the amount of $6,000 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2020. 3. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -signes. -15,000 or in parenthesise.s. (15,000) SPLISH INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activitles > > > >