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please help solve this Windsor Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional
please help solve this
Windsor Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2020 are as follows. 1. Equipment that had cost $10,900 and was 30% depreciated at time of disposal was sold for $2,500. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $4,900. 4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,200 (net of $3,900 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above their cost. No unrealized gains or losses were recorded in 2020 . 6. Cash and a long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,000 were paid in cash. (a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Windsor. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Gain from Flood Damage Depreciation Expense Copyright Amortization Loss on Sale of Equipment Gain on Sale of Investment Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Sale of Equipment Purchase of Equipment (Cash) Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Notes Payable Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2020 Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 Supplemental disclosures of cash flow information: Cash Paid During the Year for Interest $ Cash Paid During the Year for Income Taxes $ $ $Step by Step Solution
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