Statement of Cash Flows

The comparative balance sheets, income statement and additional information of Bakewell Corp. are presented as follows.

Bakewell Corp.

Balance Sheet

At 31 December

	2020	2019
	$	$
Assets
Cash	273,600	181,950
Accounts Receivable	94,350	88,850
Inventory	431,400	482,200
Prepaid Rent	20,200	18,200
Equipment	118,000	126,000
Accumulated Depreciation Equipment	(74,900)	(93,000)
Building	235,000	110,000
Accumulated Depreciation Building	(66,700)	(55,000)
Total Assets	1,030,950	859,200
Liabilities and Stockholders Equity
Liabilities
Accounts Payable	111,000	123,450
Unearned Revenue	18,050	11,250
Notes Payable (long-term)	182,500	172,500
Total Liabilities	311,550	307,200
Stockholders Equity
Common Stock	580,000	550,000
Retained Earnings	174,400	77,000
Treasury Stock	(35,000)	(75,000)
Total Stockholders Equity	719,400	552,000
Total Liabilities and Stockholders Equity	1,030,950	859,200

Bakewell Corp.

Income Statement

For the Year Ended 31 December 2020

$

Revenue	882,000
Cost of goods sold	481,000
Operating expenses	215,200
Gain on sale of equipment	4,600
Tax expense	38,000
Net income	152,400

Additional Information

a. Depreciation expenses in 2020 was $24,600.

b. Bakewell purchased an equipment costing $34,000 by cash.

c. An equipment with an original cost of $42,000 (its book value was $11,000) was sold

for $15,600 cash.

d. Paid $115,000 to settle a note payable.

e. Signed a 10-year promissory note of $125,000 in exchange for building.

f. Bakewell received cash for all new shares of common stock issued in 2020.

g. Bakewell received cash for all shares of treasury stock reissued in 2020

h. Dividends were declared and paid by cash.

Instruction:

Prepare the statement of cash flows for the year ended 31 December 2020, using the indirect method.