Question
Only answer if you know for sure and explain the steps well, please. B: Selected financial statement information and additional data for Cola Co. is
Only answer if you know for sure and explain the steps well, please.
B:
Selected financial statement information and additional data for Cola Co. is presented below. Prepare a statement of cash flows using the indirect method with all appropriate disclosures for the year ending December 31, 2020.
| 2019 | 2020 |
Cash | $54,000 | $60,000 |
Accounts receivable (net) | 72,000 | 144,200 |
Inventory | 168,000 | 206,600 |
Land | 58,800 | 26,000 |
Equipment | 504,000 | 789,600 |
Accumulated depreciation | (84,000) | (110,600) |
TOTAL | $772,800 | $1,115,800 |
Accounts payable | 50,400 | 91,000 |
Notes payable due within 12 months | 67,200 | 29,400 |
Notes payable - long-term | 168,000 | 302,400 |
Common stock | 420,000 | 487,200 |
Retained earnings | 67,200 | 205,800 |
TOTAL | $772,800 | $1,115,800 |
Additional data for 2020:
- Net income was $230,200.
- Land was sold at a gain of $10,000. No land was bought during the year.
- No equipment was sold during the year. All equipment purchases were paid for in cash.
- Interest payments amounted to $20,000 and Tax payments amounted to $15,000
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