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Prepare the ENTIRE statement of cash flows under the direct method, including the indirect reconciliation. Be sure to include an appropriate heading 18 points BART

  1. Prepare the ENTIRE statement of cash flows under the direct method, including the indirect reconciliation.

Be sure to include an appropriate heading 18 points

BART Company

Balance Sheet

As of December 31,

Account Title

2021

2020

Ending Balance

Beginning Balance

Assets:

Cash

$ 27,000

$ 20,000

Accounts Receivable

70,000

80,000

Inventory

128,000

120,000

Prepaid Advertising

10,000

11,000

Equipment

530,000

500,000

Accumulated Depreciation

(100,000)

(90,000)

Total Assets

$ 665,000

$ 641,000

Liabilities:

Accounts Payable

$ 75,000

$ 70,000

Wages Payable

30,000

33,000

Bonds Payable

125,000

200,000

Total Liabilities

$ 230,000

$ 303,000

Stockholders Equity

Common Stock

$ 325,000

$ 240,000

Retained Earnings

110,000

98,000

Total Stockholders Equity

$ 435,000

$ 338,000

Total Liabilities and Stockholders Equity

$ 665,000

$ 641,000

Bart Company

Income Statement

For the year ended December 31, 2021

Sales

$ 800,000

Less Expenses

Cost of Goods Sold

$ 600,000

Wages Expense

75,000

Advertising Expense

15,000

Depreciation Expense

10,000

Total Expenses

700,000

Net Income

$ 100,000

Additional Information

  1. Net income was $ 100,000 and dividends were $ 88,000.
  2. Common stock was issued for ______________.
  3. Purchased equipment for _________________________. No equipment was sold.
  4. Paid off ______________________ on the bonds payable. No bonds were issued.
  5. Declared and paid dividends of $88,000.

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