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Problem 23-08 Comparative balance sheet accounts of Oriole Company are presented below. ORIOLE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020

Problem 23-08

Comparative balance sheet accounts of Oriole Company are presented below.

ORIOLE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31

Debit Balances

2020

2019

Cash

$70,700

$50,900

Accounts Receivable

154,500

131,300

Inventory

75,000

61,600

Debt investments (available-for-sale)

55,200

84,600

Equipment

69,700

47,600

Buildings

144,200

144,200

Land

39,800

24,800

Totals

$609,100

$545,000

Credit Balances

Allowance for Doubtful Accounts

$9,900

$8,000

Accumulated DepreciationEquipment

20,800

13,800

Accumulated DepreciationBuildings

37,300

28,100

Accounts Payable

66,700

59,700

Income Taxes Payable

11,900

9,900

Long-Term Notes Payable

62,000

70,000

Common Stock

310,000

260,000

Retained Earnings

90,500

95,500

Totals

$609,100

$545,000

Additional data:

1. Equipment that cost $9,900 and was 60% depreciated was sold in 2020.
2. Cash dividends were declared and paid during the year.
3. Common stock was issued in exchange for land.
4. Investments that cost $34,600 were sold during the year.
5. There were no write-offs of uncollectible accounts during the year.

Orioles 2020 income statement is as follows.

Sales revenue

$951,100

Less: Cost of goods sold

603,200

Gross profit

347,900

Less: Operating expenses (includes depreciation expense and bad debt expense)

249,700

Income from operations

98,200

Other revenues and expenses
Gain on sale of investments

$15,000

Loss on sale of equipment

(3,100

)

11,900

Income before taxes

110,100

Income taxes

45,300

Net income

$64,800

(a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net cash flow from operating activities $

(b) Prepare a statement of cash flows using the indirect method.

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