please provide statement of cashflows (indirect method)
As of December 31, 2020, your company reported the following alphabetical ADJUSTED trial balance (adjusting entries for the end of the year have already been made): Debits Credits Accounts Payable $7,620 Accounts Receivable S11,865 Accumulated Depreciation - Equipment 15.260 Advertising Expense 1,892 Allowance for Doubtful Accounts 513 Amortization Expense 800 Available for Sale Securities 4,720 Bad Debts Expense 600 Bonds Payable (Due in 2024 and 2025) 18,000 Cash 3,819 Cash Dividend Declared 9:40 Cash Dividends Payable 480 Common Stock, S10 par, 30,000 shares authorized 48,000 Depreciation Expense 5,000 Discount on Bonds Payable 900 Dividend Income 183 Equipment 96,200 Franchise 4,800 Freight In 390 Income Summary (from Adjusting Merchandise) 520 Income Tax Expense $S55 Income Tax Payable SSSS Insurance Expense 1,400 Interest Expense 1,660 Interest Income 450 Interest Payable 260 Loss From Final Disposal of Discontinued Operations 1,484 Loss on Sale of Assets 1,306 Merchandise Inventory, ending 12,540 Paid in Capital in Excess of Par 22,500 Patent 5,800 Prepaid Insurance 900 Purchases 26,140 Rent Expense 3,700 Retained Earnings 28,802 Sales 59,320 Sales Returns 911 Trading Securities 1,640 Utilities Expense 3,587 Wages Expenses 8,204 330 Wages Payable TOTAL $201,718 $201.718 Additional information for 2020 for the cash flow statement: a. b. c. d. e. Declared cash dividends during 2020. Some of the dividends were paid and some will be paid in 2021. Issued $3,000 of 5 year bonds payable at 98 in cash. Purchased Available for Sale Securities for $720 in cash. Sold equipment for $5,294. The equipment originally cost $8,340 and had a book value of $6,600. Amortized the franchise. Purchased a patent for $6,000 in cash. Acquired $5,400 of equipment by issuing 300 shares of common stock on August 1, 2020. Sold 100 shares of common stock for $19 per share in cash on October 1, 2020. Recorded $5,000 of depreciation on the equipment for the year. Make sure that you have explained the change in every balance sheet account from 2019 balances to 2020 balances. You may have to make some assumptions. Balar h. i. j. Incore reta -ca INSTRUCTIONS: Based upon the list of account balances on the following page and the additional information above, prepare the COMPARATIVE multiple step income statements, COMPARATIVE retained earnings statements, and COMPARATIVE classified balance sheets for 2019 and 2020 plus the CASH FLOW STATEMENT (indirect method) for your company for the year ended December 31, 2020. Two accounts have been omitted from the list on the following pages. Income Tax Expense and Income Tax Payable have not been calculated yet for 2020. Assume the company is now in a 25% tax bracket. As of December 31, 2020, your company reported the following alphabetical ADJUSTED trial balance (adjusting entries for the end of the year have already been made): Debits Credits Accounts Payable $7,620 Accounts Receivable S11,865 Accumulated Depreciation - Equipment 15.260 Advertising Expense 1,892 Allowance for Doubtful Accounts 513 Amortization Expense 800 Available for Sale Securities 4,720 Bad Debts Expense 600 Bonds Payable (Due in 2024 and 2025) 18,000 Cash 3,819 Cash Dividend Declared 9:40 Cash Dividends Payable 480 Common Stock, S10 par, 30,000 shares authorized 48,000 Depreciation Expense 5,000 Discount on Bonds Payable 900 Dividend Income 183 Equipment 96,200 Franchise 4,800 Freight In 390 Income Summary (from Adjusting Merchandise) 520 Income Tax Expense $S55 Income Tax Payable SSSS Insurance Expense 1,400 Interest Expense 1,660 Interest Income 450 Interest Payable 260 Loss From Final Disposal of Discontinued Operations 1,484 Loss on Sale of Assets 1,306 Merchandise Inventory, ending 12,540 Paid in Capital in Excess of Par 22,500 Patent 5,800 Prepaid Insurance 900 Purchases 26,140 Rent Expense 3,700 Retained Earnings 28,802 Sales 59,320 Sales Returns 911 Trading Securities 1,640 Utilities Expense 3,587 Wages Expenses 8,204 330 Wages Payable TOTAL $201,718 $201.718 Additional information for 2020 for the cash flow statement: a. b. c. d. e. Declared cash dividends during 2020. Some of the dividends were paid and some will be paid in 2021. Issued $3,000 of 5 year bonds payable at 98 in cash. Purchased Available for Sale Securities for $720 in cash. Sold equipment for $5,294. The equipment originally cost $8,340 and had a book value of $6,600. Amortized the franchise. Purchased a patent for $6,000 in cash. Acquired $5,400 of equipment by issuing 300 shares of common stock on August 1, 2020. Sold 100 shares of common stock for $19 per share in cash on October 1, 2020. Recorded $5,000 of depreciation on the equipment for the year. Make sure that you have explained the change in every balance sheet account from 2019 balances to 2020 balances. You may have to make some assumptions. Balar h. i. j. Incore reta -ca INSTRUCTIONS: Based upon the list of account balances on the following page and the additional information above, prepare the COMPARATIVE multiple step income statements, COMPARATIVE retained earnings statements, and COMPARATIVE classified balance sheets for 2019 and 2020 plus the CASH FLOW STATEMENT (indirect method) for your company for the year ended December 31, 2020. Two accounts have been omitted from the list on the following pages. Income Tax Expense and Income Tax Payable have not been calculated yet for 2020. Assume the company is now in a 25% tax bracket
