Question
Prepare a statement of cash flows for 2021using the indirect method. Additional information: (1). Net income for 2021 was $103,000. (2). Depreciation expense was $32,000.
Prepare a statement of cash flows for 2021using the indirect method. Additional information: (1). Net income for 2021 was $103,000. (2). Depreciation expense was $32,000. (3). Cash dividends of $45,000 were declared and paid. (4). Bonds payable amounting to $50,000 were redeemed for cash $50,000. (5). Common stock was issued for $42,000 cash. (6). No equipment was sold during 2021. (7). Land was sold for its book value of $27,000. Here are comparative balance sheets for Saleh Company. Saleh Company Comparative Balance Sheets December 31
Assets 2021 2020 Cash $ 73,000 $ 33,000 Accounts receivable 85,000 71,000 Inventory 170,000 187,000 Land 73,000 100,000 Equipment 260,000 200,000 Accumulated depreciation equipment (66,000) (34,000) Total $ 595,000 $ 557,000 Liabilities and Stockholders Equity Accounts payable $ 35,000 $ 47,000
Business Administration Program Final Assessment Semester Spring 2021Page 2 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,000 Retained earnings 194,000 136,000 Total $ 595,000 $ 557,000
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