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Pronghorn Inc., a greeting card company, had the following statements prepared as of December 31, 2020. PRONGHORN INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,

Pronghorn Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

PRONGHORN INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

12/31/20

12/31/19

Cash

$5,900

$7,000

Accounts receivable

62,000

51,500

Short-term debt investments (available-for-sale)

34,700

17,900

Inventory

39,700

60,400

Prepaid rent

4,900

4,100

Equipment

154,300

130,500

Accumulated depreciationequipment

(35,300

)

(25,200

)

Copyrights

45,600

49,700

Total assets

$311,800

$295,900

Accounts payable

$46,200

$40,400

Income taxes payable

4,000

6,000

Salaries and wages payable

8,100

3,900

Short-term loans payable

8,000

9,900

Long-term loans payable

60,200

69,300

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

55,300

36,400

Total liabilities & stockholders equity

$311,800

$295,900

PRONGHORN INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020

Sales revenue

$335,600

Cost of goods sold

174,600

Gross profit

161,000

Operating expenses

120,700

Operating income

40,300

Interest expense

$11,400

Gain on sale of equipment

2,100

9,300

Income before tax

31,000

Income tax expense

6,200

Net income

$24,800

Additional information:

1. Dividends in the amount of $5,900 were declared and paid during 2020.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020.

Prepare a statement of cash flows using the indirect method.

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