Question 42 Boughs of Holly, Co. Income Statement: (in $8). Sales Revenue $1,250,000 Cost of goods sold 500,000 Depreciation expense 90,000 Salary expense 300,000 Advertising expense 40,000 Insurance expense 15,000 Gain on Sale of Land 10.000 Net Income $315,000 Balance Sheet: (in Se) 12/31/2020 12/31/2019 Cash 895,000 870,000 Accounts Receivable, net 100,000 82,000 Inventory 40,000 65,000 Prepaid Insurance 10,000 8,000 Land 450,000 500,000 Building 800.000 800.000 Equipment 760,000 600,000 Accumulated Depreciation (290,000) (200,000) Total Assets 2,765,000 2,725,000 Accounts Payable 10,000 85,000 Salaries Payable 20,000 30,000 Bonds Payable 150,000 250,000 Common Stock 940,000 900,000 Retained Earnings 1,645,000 1,460,000 Total Liabilities & Stockholders' Equity 2,765,000 2,725,000 Additional information: 1. During 2020, Boughs of Holly sold Land for $60,000. 2. During 2020, the company sold a piece of Equipment for cash that had originally cost $15,000. The accumulated depreciation associated with the equipment at the time of sale was $5,000. There was no gain or loss on the sale. 3. New equipment was purchased for cash. 4. Dividends were paid in cash. Prepare, using the answer template below, Boughs of Holly, Co. Statement of Cash Flows using the Indirect Method The first row is completed for you, Make sure to type in the correct label (l.e. Decrease in Salaries Payable) in the first column and the dollar amount in the second column. Do NOT use dollar signs ($) or commas when typing in the amount. For example, $12,500 would be typed in as 12500. The template format is similar to what we completed in class. ****This is manually going to be scored, so do not focus on what Canvas may score it as initially. **** Cash Flows From Operating Activities: Net Income 315000 Cash Flows From Operating Activities: Net Income 315000 Adjustments to reconcile net income to net cash provided by operating activities: Net Cash provided by/used for Operating Activities Cash Flows from Investing Activities: Net Cash provided by/ used for Investing Activities Cash Flows from Financing Activities: Net Cash provided by/used for Financing Activities Change in Cash Cash balance December 31, 2019 Cash balance December 31, 2020