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Metlock Inc. had the following balance sheet at December 31, 2019. METLOCK INC. BALANCE SHEET DECEMBER 31, 2019 Cash $ 23,380 Accounts payable $ 33,380
Metlock Inc. had the following balance sheet at December 31, 2019.
METLOCK INC. BALANCE SHEET DECEMBER 31, 2019 | ||||||
Cash | $ 23,380 | Accounts payable | $ 33,380 | |||
Accounts receivable | 24,580 | Notes payable (long-term) | 44,380 | |||
Investments | 35,380 | Common stock | 103,380 | |||
Plant assets (net) | 81,000 | Retained earnings | 26,580 | |||
Land | 43,380 | $ 207,720 | ||||
$ 207,720 |
During 2020, the following occurred.
1. | Metlock Inc. sold part of its debt investment portfolio for $ 17,299. This transaction resulted in a gain of $ 5,699 for the firm. The company classifies these investments as available-for-sale. | |
2. | A tract of land was purchased for $ 16,380 cash. | |
3. | Long-term notes payable in the amount of $ 18,299 were retired before maturity by paying $ 18,299 cash. | |
4. | An additional $ 22,299 in common stock was issued at par. | |
5. | Dividends of $ 10,499 were declared and paid to stockholders. | |
6. | Net income for 2020 was $ 35,380 after allowing for depreciation of $ 13,299. | |
7. | Land was purchased through the issuance of $ 38,380 in bonds. | |
8. | At December 31, 2020, Cash was $ 40,380, Accounts Receivable was $ 44,980, and Accounts Payable remained at $ 33,380. |
(a)
Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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