Practice Problem - Cash flow statement The following data refers to Skyline Company. Additional information: the company sold a building for $6,000 and bought equipment for $10,000. There was a land sale, but no patent sale or purchase. Income Statement For the Year Ended December 31, 2020 $ 120,000 70,000) 13,000) 1,000) 20,000) 2,000) Sales Less: Expenses Cost of Goods Sold Depreciation Expense Amortization Expense Salaries Expense Interest Expense Gain on Sale of Building Taxes Expense Net Income Cash Accounts Receivable Inventory Buildings and Equipment, net Land Patents Total Assets Accounts Payable Interest Payable Mortgage Payable Contributed Capital Retained Earnings Balance Sheet Total Equities 1,000 6,000) $ 9,000 2019 $ 17,000. 35.000 16,000 74,000 40,000 18,000 $ 200,000 2019 $ 19,000 $ 30,000 82,000 69,000 $200,000 2020 28,000 14,000 26,000 66,000 31,000 17.000 $ 182,000 S $ $ 2020 5,000 1,000 10,000 112,000 54,000 S 182,000 Change 11,000 (21,000) 10,000 (8,000) (9,000) (1,000) Change (14,000) 1,000 (20,000) 30,000 (15,000) 1. Prepare a statement of cash flows in good form. For cash flows from operations use the indirect method. Show all supporting calculations. Operating Activities Net Income Adjustment to net income to reconcile operating cash flow Add: Depreciation Expense Less: Gain on sale of building Add: Amortization of patent Decrease in Account Receivable (Add) Increase in inventory (Less) Decrease in Account Payable (Less) Increase in Interest Payable (Add) Net adjustment to net income Net cash flow provided by operating activity Investing Activities Cash proceeds of building Cash proceeds of Land Payment for purchase of equipment Net cash flow provided by investing activity Financing Activities Proceed from issued of common stock Repayment of Mortgage Payable Cash dividends paid Net cash flow provided by Financing Activity Increase in cash Add: Cash balance at the beginning Cash balance at the end of the year $9,000 $13,000 $(1,000) $1,000 $21,000 $(10,000) $(14,000) $1,000 $11,000 $20,000 $6,000 $9,000 $(10,000) $5,000 $30,000 $(20,000) $(24,000) $(14,000) $11,000 $ 17,000 $28,000