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Question 2 of 5 0.49/2 E Monty Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land MONTY INC. BALANCE SHEET DECEMBER 31, 2019 $25,290 Accounts payable 26.490 Notes payable (long-term) 37.290 Common stock 81,000 Retained earnings 45.290 $215,360 $35,290 46,290 105,290 28,490 $215,360 During 2020, the following occurred. 1. 2 3. 4 Monty Inc. sold part of its debt investment portfolio for $19,143. This transaction resulted in a gain of $7.543 for the firm. The company classifies these investments as available for sale. Atract of land was purchased for $18.290 cash. Long-term notes payable in the amount of $20,143 were retired before maturity by paying $20,143 cash. An additional $24,143 in common stock was issued at par. Dividends of $12,343 were declared and paid to stockholders. Net income for 2020 was $37,290 after allowing for depreciation of $15.143. Land was purchased through the issuance of $40,290 in bonds. At December 31, 2020, Cash was $42.290, Accounts Receivable was $46,890, and Accounts Payable remained at $35.290. 5. 6. 7. 8. Your answer is partially correct. Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,000).) MONTY INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 37290 Adjustments to reconcile net income to Net Cash Provided by Operating Activities V Depreciation Expense 15143 Gain on Sale of investments 7543 Increase in Account Receivable 20400 -12800 Net Cash Provided by Operating Activities 24490 Cash Flows from Investing Activities 2 OT 5 0.49/2 Net Cash Provided by Operating Activities 24490 Cash Flows from Investing Activities Sale of Investments 20143 Purchase of Land 18290 Net Cash Provided by Investing Activities 18147 Net Cash Used by Financing Activities Retirement of Notes Payable -20143 Issuance of Common Stock 24143 Payment of Cash Dividends v -12343 Net Cash Used by Financing Activities - 16343 Net Increase in Cash > 26294 Cash at Beginning of Year 25290 Cash at End of Year 51584 Noncash Investing and Financing Activities Cash at End of Year 51584 Noncash Investing and Financing Activities Land purchased through issuance of $ 24143 of bonds