KINGBIRD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,810 \begin{tabular}{lr} Cost of goods sold & 4,680 \\ \cline { 2 - 2 } Gross margin & 2,130 \end{tabular} \begin{tabular}{lr} Selling and administrative expenses & 920 \\ \cline { 2 - 2 } Income from operations & 1,210 \end{tabular} Other revenues and gains Gain on sale of investments Income before tax 1,29080 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows 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). KINGBIRD COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income $ 760 Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense $ 80 Gain on Sale of Investments \begin{tabular}{||r|} \hline 80 \\ \hline \hline \end{tabular} Increase in Accounts Receivable 460 Decrease in Inventory 370 Increase in Accounts Payable 310 Decrease in Accrued Liabilities 60 \begin{tabular}{||r|} \hline \hline 320 \\ \hline \hline \end{tabular} Net Cash Provided by Operating Activities \begin{tabular}{|r|} \hline 440 \\ \hline \hline \end{tabular} Cash Flows from Investing Activities Purchase of Plant Assets \begin{tabular}{|r|} \hline \hline 60 \\ \hline \hline \end{tabular} Net Cash Provided by Investing Activities \begin{tabular}{|r|} \hline 280 \\ \hline \hline \end{tabular} Cash Flows from Financing Activities KINGBIRD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,810 \begin{tabular}{lr} Cost of goods sold & 4,680 \\ \cline { 2 - 2 } Gross margin & 2,130 \end{tabular} \begin{tabular}{lr} Selling and administrative expenses & 920 \\ \cline { 2 - 2 } Income from operations & 1,210 \end{tabular} Other revenues and gains Gain on sale of investments Income before tax 1,29080 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows 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). KINGBIRD COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income $ 760 Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense $ 80 Gain on Sale of Investments \begin{tabular}{||r|} \hline 80 \\ \hline \hline \end{tabular} Increase in Accounts Receivable 460 Decrease in Inventory 370 Increase in Accounts Payable 310 Decrease in Accrued Liabilities 60 \begin{tabular}{||r|} \hline \hline 320 \\ \hline \hline \end{tabular} Net Cash Provided by Operating Activities \begin{tabular}{|r|} \hline 440 \\ \hline \hline \end{tabular} Cash Flows from Investing Activities Purchase of Plant Assets \begin{tabular}{|r|} \hline \hline 60 \\ \hline \hline \end{tabular} Net Cash Provided by Investing Activities \begin{tabular}{|r|} \hline 280 \\ \hline \hline \end{tabular} Cash Flows from Financing Activities
