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Please help 2019 10.000 The comparative balance sheet for Sors Limited at December 31 is as follows: 2020 Assets Current Cash $ 6,000 $7,000 Accounts
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2019 10.000 The comparative balance sheet for Sors Limited at December 31 is as follows: 2020 Assets Current Cash $ 6,000 $7,000 Accounts receivable 3.000 4,500 Merchandise Inventory 12,000 11.000 21,000 22.500 Plant assets Land 23.000 Equipment 40.000 30,000 Acc. dep'n-equipment 19.000) (8.000) 54,000 32.000 $75,000 $54,500 Liabilities Current Accounts payable $ 6,000 $7,000 Non current borrowings, due in one year 6,000 6.000 12.000 13.000 Non-current Borrowings 10,000 16,000 22.000 29,000 Stockholders' Equity Common stock 8,000 3.000 Retained earnings 45.000 22.500 53,000 25.500 $75,000 $54,500 0-0-0 Required: O 1. Prepare a statement of cash flows. 2. What observations about Sors Limited can you make from the SCF? 0-0-0 Additional information for 2020 2. Net income for the year was $27,500. There were no income taxes. b. No land was sold c Equipment was purchased for $20,000 in exchange for common stock valued at $5.000, plus $15,000 cash. d. Equipment costing $10,000 was sold for $12,000 cash; a $4,000 gain was reported in net income. e. Cash dividends of $5,000 were declared and paid. Depreciation expense of $3,000 was included in the net income amount & No borrowings were repaid
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