Statement of Cash Flows Activity #2 Given the following balance sheet and explanation of transactions, construct a Statement of Cash Flows: 2020 2019 Change Cash $20,000 $15,000 $5,000 increase Accounts Receivable $30,000 $35,000 $5,000 decrease Inventory $46,000 $40,000 $6,000 increase PP&E $450,000 $375,000 $75,000 increase Accumulated Depreciation ($60,000) ($50,000) $10,000 increase Total Assets $486,000 $415,000 Accounts Payable Bank Loans Common Stock, $1 par Additional Paid-in Capital Retained Earnings Total Liabilities & Equity $25,000 $120,000 $15,000 $70,000 $256,000 $486,000 $30,000 $100,000 $10,000 $40,000 $235,000 $415,000 $5,000 decrease $20,000 increase $5,000 increase $30,000 increase $21,000 increase The company had net income of $40,000 and paid dividends of $19,000 (this is the $21,000 change in Retained Earnings). The change in the Bank Loans is due to $50,000 of repayment of one loan and taking out a new $70,000 bank loan. 5,000 shares of common stock were issued for $7 per share (total of $35,000). Changes in PP&E and Accumulated Depreciation are due to the following items: a. Purchased $120,000 of new equipment b. Sold old equipment with cost of $45,000, accumulated depreciation of $30,000, for $20,000 c. Current year depreciation expense was $40,000