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Metlock, Inc.s comparative balance sheets are presented below: Prepare a statement of cash flows for 2020 using the indirect method. Metlock, Inc.'s comparative balance sheets
Metlock, Inc.s comparative balance sheets are presented below: Prepare a statement of cash flows for 2020 using the indirect method.
Metlock, Inc.'s comparative balance sheets are presented below: Metlock, Inc. Comparative Balance Sheets December 31 2020 Cash $ 16,700 Accounts receivable 24,900 Investments 20,050 Equipment 59,950 Accumulated depreciation-equipment (14,250) Total $107,350 2019 $ 17,500 22,300 16,050 70,150 (10,000) $116,000 Accounts payable Bonds payable Common stock Retained earnings Total $ 14,850 10,900 50,100 31,500 $107,350 $ 11,050 30,000 44,500 30,450 $116,000 Additional information: 1. Net income was $18,450. Dividends declared and paid were $17,400. 2. Equipment which cost $10,200 and had accumulated depreciation of $1,700 was sold for $3,700. 3. No noncash investing and financing activities occurred during 2020. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -45,000, or in parenthesis e.g. (45,000).) Metlock, Inc. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 18450 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on disposal of Plant Assets 4800 Increase in Accounts Receivable (2600) Increase in Accounts Payable 3800 Cash Flows from Operating Activities Cash Flows from Investing Activities Purchase of Investments (4000) Sale of Equipment Cash Flows from Investing Activities Cash Flows from Financing Activities Payment of Dividends Cash Flows from Operating Activities Cash Flows from Investing Activities Purchase of Investments (4000) Sale of Equipment Cash Flows from Investing Activities Cash Flows from Financing Activities Payment of Dividends Issuance of Common Stock Cash Flows from Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of PeriodStep by Step Solution
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