Question 2 of 2 - / 70 ili Alex Company reported the following information for 2020 Alex Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals 2020 $62,000 65,000 46,000 6,000 58,000 185,000 (22,500) 190,000 (27,000) $562,500 2019 $39,000 24,000 -0 3,000 66,000 185,000 (15,000) 75,000 19.720) $367,280 Change Increase/Decrease $23,000 Increase 41,000 Increase 46,000 Increase 3,000 Increase 8.000 Decrease -0- 7,500 Increase 115,000 Increase 17,280 Increase Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock (51 par) Retained earnings Totals $44,000 -0- 109,000 230,000 179,500 $562,500 $39.000 11,000 153,000 55,000 109,280 $367,280 $5,000 11,000 44,000 175.000 70.220 Increase Decrease Decrease Increase Increase Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $883,000 Cost of goods sold $444,000 Operating expenses 230,000 Interest expense 12,000 Loss on disposal of plant assets 2,000 688,000 Income before income taxes 195,000 Income tax expense 60,000 Question 2 of 2 - / 70 Bonds payable Common stock ($1 par) Retained earnings Totals 109,000 230,000 179,500 $562.500 153,000 55,000 109,280 $367,280 44,000 175.000 70.220 Decrease Increase Increase Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $883,000 Cost of goods sold $444,000 Operating expenses 230,000 Interest expense 12,000 Loss on disposal of plant assets 2,000 688,000 Income before income taxes 195,000 Income tax expense 60,000 Net income $135,000 Additional information: 1. Operating expenses include depreciation expense of $40,780. 2 Land was sold at its book value for cash. Cash dividends of $64,780 were declared and paid in 2020, Equipment with a cost of $169,000 was purchased for cash. Equipment with a cost of $54,000 and a book value of $38,000 was sold for $36,000 cash. Bonds of $44,000 were redeemed at their face value for cash. Common stock ($1 par) of $175,000 was issued for cash. 3. 4. 5. 6. Use this information to Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. 15,000 or in parenthesis es (15,0001) ALEX COMPANY Statement of Cash Flows-Indirect Method Question 2 of 2 - / 70 ALEX COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to > > > > > Question 2 of 2 > - / 70 > e Textbook and Media Attempts: 0 of 4 used
