Question 1 Thunder Mountain Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2019. Thunder Mountain Company Balance Sheet December 31, 2020 2020 $ 162,500 45,000 25.000 2019 Change $ 55,000 $ 107,500 21,000 24,000 43,000 (18,000) Cash Accounts receivable Inventory Property, Plant & Equipment (net) Total assets 28.000 S260.500 50.000 $169.000 (22.000) S91.500 Accounts payable Accrued liabilities Long-term notes payable Total liabilities $15.000 43,000 25.000 S 83.000 $19,000 29,000 40.000 S 88.000 S (4,000) 14,000 (15,000 S (5,000 Common shares Retained earnings Total equity Total liabilities and equity S 65.000 112.500 $177,500 $ 15,000 66.000 $81.000 S 50,000 46.500 S 96,500 $260.500 $169,000 S 91.500 Question 1 (continued $ 252,500 Thunder Mountain Company Income Statement For the Year Ended December 31, 2020 Revenues and gains: Sales revenue $ 240,000 Interest revenue 2,500 Gain on sale of plant assets 10.000 Total revenues Expenses: Cost of goods sold $ 125,000 Salary expense 33,000 Depreciation expense 12,000 Other operating expenses 17.000 Interest expense 2.000 Income tax expense 7.000 Total expenses Net income 196.000 $ 56,500 Thunder Mountain Company Statement of Retained Earnings For the Year Ended December 31, 2020 Retained earnings, January 1, 2020 $ 66,000 Net income 56,500 Dividends (10.000 Retained earnings, December 31, 2020 $ 112.500 Additional information provided: Equipment costing $30,000 was purchased for cash. Equipment with a net asset value of $40,000 was sold for $50,000 During 2020, the company repaid $40,000 of long-term notes payable. During 2020, the company borrowed $25,000 on a new note payable During 2020, the company sold common shares for $50,000 The company traded common shares for a building valued at $110,000 Prepare a statement of cash flows in good form assuming that Thunder Mountain Company uses the indirect method including any noncash investing and financing activities Assignment 6 - Chapters 9 & 10 COMO4 - Fall 2020 Question 1 (continued)