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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

  1. Sold investment that cost $4 for $3.
  2. Average shares of stock outstanding was $10.
  3. Market price of a share of common stock was $20.
  4. 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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