Purchase of Equipment Cash Flows from Investing Activities Velo Company Statement of Cash Flows December 31, 2020 2019 $32,900 Cash Flows from Operating Activities 70,600 187,200 Net Income 101,200 Adjustments to reconcile net income to 200,700 Net Cash Provided by Operating Activities (33,900) $558,700 Depreciation Expense 101500 Velo Company Comparative Balance Sheets December 31 Assets 2020 Cash $73,500 Accounts receivable 86,200 Inventory 169,600 Land 73,300 Equipment 259,600 Accumulated depreciation equipment (66,400) Total $595,800 Liabilities and Stockholders' Equity Accounts payable $35,300 Bonds payable 151,500 Common stock ($1 par) 217,200 Retained earnings 191,800 Total $595,800 Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds Increase in Accounts Receivable Payment of Cash Dividends Decrease in Inventory $46,600 203,000 174,700 134,400 $558,700 Cash Flows from Financing Activities Decrease in Accounts Payable Net Increase in Cash Net Cash Provided by Operating Activities Cash at Beginning of Period Additional information: 1. Net income for 2020 was $101,500. 2. Cash dividends of $44,100 were declared and paid. 3. Bonds payable amounting to $51,500 were redeemed for cash $51,50 4. Common stock was issued for $42,500 cash. 5. No equipment was sold during 2020, but land was sold at cost. Cash at End of Period A Cash Flows from Investing Activities Sale of Land