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section B Here are comparative balance sheets for Metlock Company. Prepare a statement of cash flows-indirect method. Additional information: 1. Netincome for 2020 was $96,000.
section B
Here are comparative balance sheets for Metlock Company. Prepare a statement of cash flows-indirect method. Additional information: 1. Netincome for 2020 was $96,000. 2. Cash dividends of $25,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $42,000 cash. 5. Equipment that cost $50.000 and had a book value of $27.000 was sold for $34,000 during 2020 : land was sold at cost. METLOCK COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Receivable Decrease in fmentory Decrease in Accounts Payable Cash Flows from Investing Activities Sale of Equipment 34000 Cash Flows from Investing Activitien Sale of Equipment 34000 Sale of Land 27000 Purchase of Equipinent 103000 Cash Flows from Investing Activities Cash Flows from Financing Activities Redemption of Bonds Issuance of Common Stock Payment of Cash Dividends 25000 Net Decrease in Cash 44000 \begin{tabular}{|l|r|} \hline Cash Flows from Financine Activities \\ \hline Cash at Beginning of Period & 51000 \\ \hline Cash at End af Period & $2000 \\ \hline \end{tabular} Compute free cash flow for 2020. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,000)J Free cash flow Step by Step Solution
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