LARKSPUR COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2020 AND 2019

2020 2019

Cash $1,820 $1,140

Receivables 1,780 1,290

Inventory 1,590 1,860

Plant asset 1,870 1,710

Accumulated depreciation (1,220) (1,150)

Long-term investments (held-to-maturity) 1,270 1,420

$7,110 $6,270

Accounts payable $1,170 $880

Accrued liabilities 210 240

Bonds payable 1,390 1,580

Common stock 1,930 1,680

Retained earnings 2,410 1,890

$7,110 $6,270

LARKSPUR COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue $6,930

Cost of goods sold 4,750

Gross margin 2,180

Selling and administrative expenses 940

Income from operations 1,240

Other revenues and gains

Gain on sale of investments 80

Income before tax 1,320

Income tax expense 540

Net income 780

Cash dividends 260

Income retained in business $520

Additional information:

During the year, $70of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Show a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

LARKSUR COMPANY

STATEMENT OF CASH FLOWS

DIRECT METHOD

(20 account types) (17 dollar amounts)

(A)

(B) $

(C) $

(D) $

(E) $__

$__

(F) $

(G)

(H) $

(I) $__

(J) $

(K)

(L) $

(M) $

(N) $__

(O) $__

(P) $

(Q) $__

(R) $__

(S)

(T) $