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Kindly solve this to help me and show working. The following pertains to Addison Corporation: Additional Information for Addison (all 2019 activities): Net Income for

Kindly solve this to help me and show working.

The following pertains to Addison Corporation:

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image text in transcribed

Additional Information for Addison (all 2019 activities):

  1. Net Income for 2019 = $65,000
  2. 2019 Depreciation Expense = $40,000
  3. Additional equipment purchased in 2019 = $191,000
  4. Equipment with a cost of $40,000 and book value of $35,000 was sold for $31,000, resulting in a loss of $4,000. (Note: This loss was included in the net income of $65,000).
  5. The company issued bonds in 2019 for $100,000.
  6. The company issued 1,000 shares of $10 par value capital stock for cash at a price of $50 per share.
  7. Cash dividends declared and paid to stockholders totaled $40,000 during the year.

Prepare a statement of Cash Flows using the indirect method. The statement should present the three separate sections showing cash flows from Operating Activities, Investing Activities and Financing Activities

BALANCE SHEET 2019 2018 Current Assets: Cash Accounts Receivable 55,000 129,000 Inventory Prepaid Expenses 185,000 4,000 373,000 20,000 95,000 154,000 1,000 270,000 Total Current Assets Property, Plant and Equipment Land 100,000 Equipment Accumulated Depreciation 571,000 (55,000) 616,000 989,000 100,000 420,000 (20,000) 500,000 770,000 TOTAL ASSETS LIABILTIES & STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Income Taxes Payable 183,000 8,000 3,000 194,000 131,000 10,000 9,000 150,000 Accrued Expenses Payable Total Current Liabilities Long-term Liabilities: Bonds Payable 400,000 300,000 594,000 450,000 Stockholders' Equity: Capital Stock 60,000 50,000 Additional Paid-in Capital Retained Earnings Total Stockholders' Equity TOTAL LIABILTIES & STOCKHOLDERS' EQUITY 140,000 195,000 395,000 989,000 100,000 170,000 320,000 770,000

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