Question
MK Co. has the following comparative data. MK Co. Comparative Statement of Financial Position Dec. 31, 2020 Dec. 31, 2019 Assets Equipment 60,000 32,000 Accumulated
MK Co. has the following comparative data. MK Co. Comparative Statement of Financial Position Dec. 31, 2020 Dec. 31, 2019 Assets Equipment 60,000 32,000 Accumulated depreciation-equipment (20,000) (14,000) Long-term investments 0 18,000 Prepaid expenses 6,000 9,000 Inventory 25,000 18,000 Accounts receivable 18,000 14,000 Cash 33,000 10,000 Total assets 122,000 87,000 Equity and Liabilities Share capital-ordinary 40,000 23,000 Retained earnings 28,000 10,000 Bonds payable 37,000 47,000 Accounts payable 17,000 7,000 Total equity and liabilities 122,000 87,000 Additional information: 1. Net income for the year ending December 31, 2020 was 33,000. 2. Cash dividends of 15,000 were declared and paid during the year. 3. Long-term investments that had a cost of 18,000 were sold for 14,000. 4. Sales for 2020 were 120,000. Question: Please prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
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