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Prepare a Statement of Cash Flows for 2020 in good form using the Indirect Method. ABC Company's income statement and comparative balance sheet are presented
Prepare a Statement of Cash Flows for 2020 in good form using the Indirect Method.
ABC Company's income statement and comparative balance sheet are presented below. ABC COMPANY Income Statement For Year Ended 12/31/20 $ 500,000 300,000 $ 200,000 Sales Cost of Goods Sold Gross Profit Depreciation Expense Amortization Expense Other Operating Expenses Net Income $ 20,000 10,000 116,000 146,000 $ 54,000 ABC COMPANY Comparative Balance Sheet Assets Cash Accounts Receivable (net) Merchandise Inventory Prepaid Expenses Long Term Investments - Stock Plant Assets Accumulated Depreciation Intangible Assets Total Assets Liabilities & Stockholders' Equity Accounts Payable Interest Payable Accrued Payables Bonds Payable (due 2015) Common Stock P-I-C, ex par, Common Retained Earnings Total Liab. & Stockholders Equity 12/31/2012/31/19 $ 21,000 $ 20,000 44,000 30,000 80,000 56,000 21,000 24,000 10,000 15,000 122,000 100,000 (60,000) (40,000) 30,000 20,000 $ 268,000 $225,000 10,000 1,000 7,000 40,000 100,000 25,000 85,000 $ 268,000 15,000 3,000 6,000 60,000 80,000 20,000 41,000 $225,000 Additional Information: - Cash dividends were declared and paid during 2017 (Analyze Retained Earnings account to determine amount of the cash dividend.) - Patents were purchased for cash. (Analyze Intangible Assets account very carefully here.) - ALL OTHER financing and investing activities involved cash. (Analyze changes in L.T. Investments, Bonds Payable, Common Stock etc.)Step by Step Solution
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