Preparing a Cash Flow Worksheet Taser Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $23,400 $38,280 Accounts receivable (net) 40.800 40.800 Merchandise inventory 93,600 102,000 Investments, long-term 12,000 Plant assets 202,200 216,600 Accumulated depreciation (52.800) (40,800) Total assets $307,200 $368,880 Liabilities and Stockholders' Equity Accounts payable $25,200 $22,800 Salaries payable 1,800 600 Income taxes payable 2.400 Bonds payable 120.000 120.000 Premium on bonds payable 4.800 4.440 Common stock, no-par 144,000 186,600 Retained earnings 9,000 30,240 Total liabilities andstockholders' equity $307,200 $368,880 4.200 Income Statement, For Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Salaries expense Income tax expense Interest expense Other expenses Gain on sale of plant assets Net income 2020 $144,000 (57,600) (7.200) (26,400) (12.000) (8,400) (2.760) 3,600 $33.240 Additional information 1. Purchased a plant asset, $36,000; issued capital stock in full payment. 2. Purchased a long-term investment in equity securities accounted for cash, $12,000. 3. Declared and paid a cash dividend, $12,000. 4. Sold plant asset for $6,000 cash (cost, $21,600; accumulated depreciation, $19,200). 5. Sold capital stock, 600 shares at $11 per share cash. Dived Required Cash Flow Worksheet Cash Flow Reconciliation Dr. Cr. 2020 0 $ 0 $ 0 0 0 0 0 0 0 o o o 0 O 0 0 0 . 0 0 o olo $ a. a. Prepare a cash flow worksheet. Comparative Balance Sheets 2019 Cash and cash equivalents $23,400 $ Accounts receivable 40.800 Merchandise inventory 93,600 Investments, long-term Plant assets 202,200 Accumulated depreciation (52.800) Total assets $307,200 Accounts payable $25,200 Salaries payable 1,800 Income taxes payable 2,400 Bonds payable 120,000 Premium on bonds payable 4.800 Common stock, no par 144,000 Retained earnings 9,000 Total liabilities and stockholders' equity $307,200 Cash Flows from Operating Activities Net income 0 $ o 0 0 O 0 O o O O O O O O 0 O 0 0 0 0 O 0 0 $ $ O 0 Depreciation expense O O O 0 0 0 o 0 0 0 0 0 Gain on sale of fixed assets Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in income taxes payable Cash Flows from Investing Activities Purchase of long-term investments 0 O o 0 0 o O 0 0 0 Cash Flows from Financing Activities O o o 0 Issuance of stock Net cash and cash equivalents increase 0 ooo Total $ $ 0 $ Required Cash Flow Worksheet Cash Flow Reconciliation b. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash and prepare the noncash disclosure note. Cash Flow Reconciliation Amount Net cash provided (used) by operating activities 5 Net cash provided (used) by investing activities 0 Net cash provided (used) by financing activities Net change in cash and cash equivalents 0 Cash and cash equivalents, January 1, 2020 Cash and cash equivalents, December 31, 2020 5 O O Noncash Transaction Amount $ $
