Singleton Inc.s comparative statements of financial position are presented below. Each fiscal year ends on December 31. 2020 2019 Land $20,000 $26,000 Equipment 131,000 70,000 Accumulated depreciation (12,000) (10,000) Accounts receivable 20,000 23,000 Cash 18,000 11,000 Total $177,000 $120,000 Share capitalordinary ($10 par/share) $119,000 $72,000 Retained earnings 22,000 20,000 Accounts payable 36,000 28,000 Total $177,000 $120,000

Additional information: (1) For 2020, net income was $52,000. (2) Land was sold for $7,000 cash during 2020. No land was purchased during the year. (3) On May 1, equipment with a book value of $7,000 (cost $12,000, less accumulated depreciation $5,000) was sold for $4,000 cash. (4) During 2020, cash dividends declared and paid were $14,000. (5) A 50% share dividend was declared and issued on July 31, 2020, when the fair value was $22 per share. (6) On September 30, new ordinary shares were issued at par value for cash. (Hint: You need to compute the amount here.) (7) All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Required: Prepare a statement of cash flows for 2020 using the indirect method. That is, fill in the missing items and numbers in the statement provided on the next page.

Question 7 (continued) Notes: - Provide amounts of cash outflows (i.e., decreases in cash) in parentheses. - Do not report noncash transactions.

SINGLETON INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income .................................................................................... $ 52,000 Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities .................... Cash flows from investing activities Net cash provided (used) by investing activities ................. Cash flows from financing activities Net cash provided (used) by financing activities .................... Net increase (decrease) in cash .......................................................... Cash at beginning of period ............................................................... Cash at end of period.......................................................................... $ 18,000