Sharko Brothers, Inc.

Requirements: Prepare a Statement of Cash Flows (Indirect Method) for the year ended Dec. 31,2020, including entries for a - j.

Thank you in advance, making sure that the Statement of Cash Flows is set up correctly and the Numbers are correct. I will ask a question if need further explanation and rate the answer.

Sharko Brothers, Inc. The balance sheets of Sharko Brothers Inc. at December 31, 2019 and December 31, 2020 and the related income statement for the year ended December 31, 2020 are as follows: Assets Cash Trading Securities Securities Fair Value Adjustment Accounts Receivable Inventory Prepaid Expenses Supplies Equipment Accumulated Depreciation Patents 31-Dec-20 63,000 75,000 4,600 45,000 104,250 6,000 1,200 53,500 (26,500) 31,400 357,450 31-Dec-19 23,000 58,000 2,000 35,000 159,900 18,000 8,200 80,000 (32,000) 27,200 379,300 Liabilities & Equity Accounts Payable Salaries Payable Accrued Expenses Payable Dividends Payable Bonds Payable Bond Discount Common Stock Paid-in Capital in Excess of Par Retained Earnings Treasury Stock Paid-in Capital from Treasury Stk. Trans. 53,000 1,000 4,500 7,750 70,000 (1,100) 85,000 112,000 37,100 (12,000) 200 357,450 42,000 5,000 1,500 1,000 210,000 (4,000) 75,000 50,000 30,000 (35,000) 3,800 379,300 Sharko Brothers Inc. Income Statement for the year ended December 31, 2020 $ Sales Dividend Revenue Gain on Sale of Trading Securities Gain on Sale of Patent Unrealized Holding Gain - Trading Securities Total Revenue & Gains 654,200 1,100 4,200 8,900 2,600 $ 671,000 $ Cost of Goods Sold Salary Expense Depreciation Expense - M&E Amortization Expense - Patents Other Operating Expenses Interest Expense (Including $700 amort. of discount) Loss on Bond Retirement Loss on Sale of Equipment Total Expenses & Losses Income Before Tax Income Taxes Net Income 257,600 152,600 18,500 5,600 98,100 12,000 8,400 3,100 $ 555,900 115,100 47,000 68,100 $ 0 0 0 0 Additional Information Cash was paid for Patents Patents with an amortized cost of $20,000 were sold for cash Cash dividends were declared Stock was issued in exchange for cash Treasury shares were re-issued for cash Equipment with an original cost of $ 61,000 was sold for cash Trading securities with an original cost of $40,000 were sold for cash Trading securities were purchased with cash Bonds were retired with cash on December 31, 2010 Equipment was purchased with cash - 0 - - Required: Prepare a Statement of Cash Flows (indirect method) for the year ended Dec. 31, 2020