Question 15 View Policies Current Attempt in Progress Alex Company reported the following information for 2020. Alex Company Comparative Balance Sheets December 31 Change Assets 2020 2019 Increase/Decrease Cash $56,000 $40,000 $16,000 Increase Accounts receivable 63,000 23,000 40,000 Increase Inventory 46,000 -0- 46,000 Increase Prepaid expenses 6,000 4,000 2,000 Increase Land 57,000 71,000 14,000 Decrease Buildings 196,000 196,000 -0- Accumulated depreciation-buildings (21,000) (14,000) 7,000 Increase Equipment 185,000 68,000 117,000 Increase Accumulated depreciation-equipment (28,000) (10,850) 17,150 Increase Totals $560,000 $377,150 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals $43,000 $40,000 $3,000 Increase -0- 10,000 10,000 Decrease 98,000 142,000 44,000 Decrease 211,000 60,000 151,000 Increase 208,000 125,150 82,850 Increase $560,000 $377,150 Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $938,000 Cost of goods sold $488,000 Operating expenses 209,000 Interest expense 12,000 Loss on disposal of plant assets 1,000 710,000 Income before income taxes 228,000 Income tax expense 62,000 Net income $166,000 Additional information: 1. Operating expenses include depreciation expense of $39,150. 2. Land was sold at its book value for cash. 3. Cash dividends of $83,150 were declared and paid in 2020. 4. Equipment with a cost of $163,000 was purchased for cash. Equipment with a cost of $46,000 and a book value of $31,000 was sold for $30,000 cash. 5. Bonds of $44,000 were redeemed at their face value for cash. 6. Common stock ($1 par) of $151,000 was issued for cash. Use this information to Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) ALEX COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to