LUTZ COMPANY

Income Statement

For the Year Ended December $31,2020$

LAND WASSOLD FOR $$13,000,$ it's original cost.

Land was acquired for $$50,000$ worth of Common Stock

Dividends declared and paid totaled $$16,000.$

Financial data of the Lutz Company are given below:

LUTZ COMPANY

Comparative Balance Sheet Accounts

As of December $31,20$x$1$ and $202$

Additional Data:

Net income for $202$ was $$60,000$

Investments that cost $$10,000$ were sold during the year for $$14,000.$

The gain is ordinary and is included in the net income reported above.

Equipment with an original cost of $8,000,$ with a bookvalue of $$5,000,$

was sold for $$3,000$ loss is ordinary and is included in the net income

reported above.

Land was acquired during the year through the issuance of additional

common stock. There is no other issuances of common stock duringthe

year.

Instructions

Prepare a Statement of Cash Flows for the year ended December $31$

$202$; use the indirect method in preparing the section on cash from

operating activities. Make reasonable assumptions as appropriate $($BE

SURE TO SHOW ALLSUPPORTING CALCULATIONS CLEARLY$)$

USE THE FOLLOWING FOR YOUR SOLUTION

If the direct method had been used to determine the operating

activities of the company, determine the following for $202.$

a$)$ If sales were $$320,000,$ how much cash was received from customers:

b$)$ If Cost of Goods Sold was $$160,000,$ how much cash was disbursed to

purchase merchandise: