Magic GMBA $4$ Corporation

Balance Sheets

December $31,2020$ and $2019$

ASSETS $20202019$

$ $

Cash $227,760938,816$

Accounts receivable $720,000560,000$

Less: Allowance for bad debts $9,600-8,800$

Inventory $880,000720,000$

$$Total current assets $1,818,1602,210,016$

Long term investment $191,200174,400$

Property, plant, and equipment $1,504,000800,000$

Less: Accumulated depreciation $304,000320,000$

Goodwill $240,000-$

$$Total assets $3,449,3602,864,416$

LIABILITIES AND SHAREHOLDERS$$ EQUITY

Liabilities

Accounts payable $256,000131,200$

Accrued payables $224,00096,000$

Unearned revenues $0128,000$

$$Total current liabilities $480,000355,200$

Other long term liability $-$ pension $117,42485,424$

Bonds payable $800,000800,000$

Less: Discount on bonds payable $-77,888-85,360$

Deferred income tax $50,48051,136$

$$Total Liabilities $1,370,0161,206,400$

Shareholders$$ equity

Preferred stock $800,000800,000$

Common stock $80,00080,000$

Additional paid$-$in capital $960,000880,000$

Retained earnings $527,344506,016$

Less: Treasury stock $-288,000-608,000$

$$Total shareholders$$ equity $2,079,3441,658,016$

$$Total liabilities and shareholders$$ equity $3,449,3602,864,416$

Please prepare the cash flow statement