Question
Presented below are the income statement and balance sheet of Windsor, Inc:Income Statement - 2020 Sales$100 Cost of goods sold 40 Gross profit 60 Operating
Presented below are the income statement and balance sheet of Windsor, Inc:Income Statement - 2020
Sales$100
Cost of goods sold40
Gross profit60
Operating expense7
Interest expense4
Taxes6
Gain on sale of equipment4
Loss on sale of investment(1)
Total expenses20
Net income40
Balance Sheet20202019
Cash$10$2
Accounts receivable1210
Inventory1420
Prepaid rent64
Investments610
Equipment2015
Accumulated depreciation(8)(6)
Total assets6055
Accounts Payable43
Taxes payable310
Bonds payable104
Common stock3028
Retained earnings1310
Total6055CONTINUED
Additional Information
- Sold investment that cost $4 for $3.
- Average shares of stock outstanding was $10.
- Market price of a share of common stock was $20.
- Equipment costing $5 with accumulated depreciation of $3 was sold for $6.
Required:Prepare statement of cash flows using the indirect method for 2020.
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