Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare a statement of cash flows for 2020 using the indirect method. Comparative Balance Sheets December 31 2020 Cash $ 16,700 Accounts receivable 25,100 Investments
Prepare a statement of cash flows for 2020 using the indirect method.
Comparative Balance Sheets December 31 2020 Cash $ 16,700 Accounts receivable 25,100 Investments 19,850 Equipment 60,050 Accumulated depreciation-equipment (14,150) Total $107,550 2019 $ 17,500 22,300 15,850 69,950 (10,100) $115,500 Accounts payable Bonds payable Common stock Retained earnings Total $ 14,750 11,000 49,900 31,900 $107,550 $11,150 30,000 45,300 29.050 $115,500 Additional information: 1. Net income was $18,250. Dividends declared and paid were $15,400. 2. Equipment which cost $9,900 and had accumulated depreciation of $2,000 was sold for $3,400. 3. No noncash investing and financing activities occurred during 2020. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 18250 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 5950 Loss on disposal of Plant Assets 4800 Increase in Accounts Receivable Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Investments Sale of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Payment of Dividends Retirement of Bonds Issuance of Common Stock Net Cash Used by Financing Activities Issuance of Common Stock Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period AttemStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started