mangerial

Breklander Problem ? (25 points) The comparative balance sheets for the years ended December 31, 20X0 and 20x1 for Mathew Cara memached Additional financial information about Mathewson Corporation is provided helow (1) The company purchased land for SIS 000 by issuing 2.000 shares of common stock. The company al issued 7,000 shares of common stock for cash during the year. (2) The company purchased $40,000 of equipment by issuing a long term note payable. The company also purchased equipment for cash (3) The company sold equipment that had an original cost of $10,000 and a book value of $7.000. The proceeds from the sale were S 000. All other changes to the accumulated depreciation account were due to the depreciation expense for the period. (4) The company had to purchases or sales of patients during the year (5) The company made repayments on the long term notes. No other notes were issued other than the note discussed in (2) above (6) Net income for the year was $70,000. All other changes to retained earnings were due to dividends paid during the year. REQUIRED: Prepare, in proper form, a statement of cash flows, using the indirect method, for Mathewson Corporation for the year ended December 31, 20X1. MATHEWSON CORPORATION COMPARATIVE BALANCE SHEETS FOR YEARS ENDED DECEMBER 31, 20X1 AND 20X0 2OXI ASSETS 20NO Cach $ 20,000 S 16,500 36,000 90.000 Accounts Receivable Merchandise Inventory Prepaid Expenses Land Equipment Accumulated Depreciation Equipment Patent TOTAL ASSETS 1,500 50,000 250,000 28.000 85.000 2,000 35,000 175.000 50.000) ( 61.000) ( 10,000 396,500 13,000 304,500 S S 24,000 10,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Short Term Notes Payable Income Taxes Payable Long Term Notes Payable Common Stock, S5 par value Paid In Capital in Excess of Par Value Retained Earnings TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 21,000S 11.000 5,500 35,000 195.000 10,000 119,000 4.000 40,000 150.000 76,500 396,500S 304,500