Kingbird Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

KINGBIRD INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2020 AND 2019

12/31/20 12/31/19

Cash $6,000 $7,100

Accounts receivable 62,000 50,900

Short-term debt investments (available-for-sale) 34,900 17,900

Inventory 40,400 59,800

Prepaid rent 5,100 3,900

Equipment 154,900 129,200

Accumulated depreciationequipment (34,900) (25,200)

Copyrights 46,200 49,500

Total assets $314,600 $293,100

Accounts payable $46,500 $40,100

Income taxes payable 4,000 6,100

Salaries and wages payable 8,000 3,900

Short-term loans payable 8,100 10,000

Long-term loans payable 60,600 69,200

Common stock, $10 par 100,000 100,000

Contributed capital, common stock 30,000 30,000

Retained earnings 57,400 33,800

Total liabilities & stockholders' equity 314,600 $293,100

KINGBIRD INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2020

Sales revenue $340,125

Cost of goods sold 174,600

Gross profit 165,525

Operating expenses 119,000

Operating income 46,525

Interest expense $11,400

Gain on sale of equipment 2,000 9,400

Income before tax 37,125

Income tax expense 7,425

Net income $29,700

Additional information:

1. Dividends in the amount of $6,100 were declared and paid during 2020.

2. Depreciation expense and amortization expense are included in operating expenses.

3. No unrealized gains or losses have occurred on the investments during the year.

4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020.

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 INC.

Statement of Cash Flows

choose the accounting period

select an opening name for section one

select an item

$enter a dollar amount

Adjustments to reconcile net income to

select a subsection name

select an item

$enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

enter a subtotal of the adjustments

select a closing name for section one

enter a total amount for section one

select an opening name for section two

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select a closing name for section two

enter a total amount for section two

select an opening name for section three

select an item

enter a dollar amount

select an item

enter a dollar amount

select an item

enter a dollar amount

select a closing name for section three

enter a total amount for section three

select an item

enter a total amount for three sections

select an item

enter a dollar amount

select a closing name for this statement

$enter a total of the two previous amounts