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
- 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 expense 9
Interest expense 4
Taxes 6
Loss on sale of investment 1
Total expenses 20
Net income 40
Balance Sheet 2020 2019
Cash $10 $2
Accounts receivable 12 10
Inventory 14 20
Prepaid rent 6 4
Investments 6 10
Equipment 20 15
Accumulated depreciation (8) (6)
Total assets 60 55
Accounts Payable 4 3
Taxes payable 3 10
Bonds payable 10 4
Common stock 30 28
Retained earnings 13 10
Total 60 55
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
Required: Prepare a statement of cash flows using the indirect method for 2020.
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