mNmUI-Ale-I 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 A B C D E F Required: Prepare a cash flow statement, in good form, using the indicrect method for operating activities. Pillow Companys comparative balances sheets for 2019 and 2020 are presented below. Pillow Company Balance Sheets December 31 Increase 2020 2019 (Decrease) Assets Cash 337,000 246,000 91,000 Accounts receivable, net 420,000 280,000 140,000 Marketable securities 15,000 0 15,000 Inventories 520,000 440,000 80,000 Land 650,000 400,000 250,000 Plant and equipment 1,160,000 1,266,000 (106,000) Less: Accumulated depreciation 180 000 200 000 20 000 Total assets 2,922,000 2,432,000 490,000 Liabilities and Stockholders' Equity Liabilities Accounts payable 660,000 500,000 160,000 Accrued wages 540,000 520,000 20,000 Long-term bonds (due 7/1/2023) 260 000 360 000 100 000 Total liabilities 1,460,000 1,380,000 80,000 Stockholders' equity: Common stockand APIC 966,000 760,000 206,000 Retained earnings 496,000 292,000 204,000 Total stockholders' equity 1,462,000 1,052,000 410,000 Total liabilities and stockholders' equity 2,922,000 2,432,000 490,000 Other information On Jan 11, 2020, Pillow purchased land for $170,000 cash On Jan 23, 2020, Pillow extinguished long-term bonds with a face value of $100,000 On July 1, 2020, Pillow declared and paid a $40,000 cash dividend NF'F'H'PNL' The income statement of Pillow Company for the year ended December 31, 2020 is as follows: Pillow Company Income Statement for the Year Ended December 31, 2020 Sales 1,600,000 Gain on sale of marketable securities 2,000 Gain on extinguishment of debt 44,000 Total revenue and gains 1,646,000 Expenses Cost of goods sold 720,000 Personnel costs 386,000 Depreciation 40,000 Loss on sale of equipment 8,000 Interest 32,000 Miscellaneous 16,000 Total expenses 1,202,000 Income before income taxes 444,000 Income tax expense 200,000 Net income 244,000 On Feb 8, 2020, Pillow issued 8,400 shares of common stockfor cash. The stockwas issued at $15 per share. Pillow purchased marketable securities for $30,000 on Mar 15, 2020; one-half of the securities were later sold on Dec 3, 2020 On June 9, 2020, Pillow issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction On Oct 18, 2020, Pillow sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash