Su Your question: The following are comparative balance sheets and an income statement for the The Circle Company. The Circle Company Balance Sheets As of December 31 2020 2019 Assets: Cash $75,000 $100,000 Accounts receivable 163,500 125,000 Inventory 133,000 220,000 Property, Plant and Equipment 70,000 50,000 Less: Accumulated Depreciation (40,000) (35,000) Long-term investments 20,000 65,000 Valuation Allowance - LT Investments 2,000 4.000 Totals $423,500 $529.000 Liabilities and shareholders' equity: Accounts payable - Merchandise Operating expenses payable Notes Payable Bonds payable Common stock Treasury Stock, Common Retained earnings Accumulated Other Comprehensive Income Totals $ 35,000 32,500 7,500 60,000 175,000 (8,000) 120,000 2.000 $423.500 $110,000 25,000 -0- 110,000 150,000 -O- 155,000 4,000 $529.000 The Girl The Circle Company Income Statement For the Year Ended December 31, 2020 Sales Cost of Goods sold Gross Profit Operating expenses (excluding depreciation expense) Depreciation expense Income from operations Other expenses: Loss on sale of long-term investment Net Income Other comprehensive Income - Unrealized holding gains/(loss) Comprehensive Income $571,000 372.500 $198,500 182,000 5,000 $ 11,500 (4,500) 7.000 (2.000) $ 5,000 Additional Information 2020: Cash dividends were declared and paid in 2020. Amount should be computed from relevant information provided in the PS. No stock dividends were declared or issued in 2020 No Property. Plant or Equipment was sold in 2020 During 2020, Property, Plant and Equipment of $7,500 was acquired by signing a $7,500 Notes Payable on the day of acquisition. All other acquisitions were paid with cash Treasury Stock was purchased during the year A portion of the Long-term investments were sold receiving cash during the year. Any change in Bonds Payable relates to repayment of principle (face) amounts. All sales of Common Stock (No par value) were for cash I need help preparing the Statement of Cash Flows of The Circle Company for the year ended December 31, 2020 using the direct method A Su Your question: The following are comparative balance sheets and an income statement for the The Circle Company. The Circle Company Balance Sheets As of December 31 2020 2019 Assets: Cash $75,000 $100,000 Accounts receivable 163,500 125,000 Inventory 133,000 220,000 Property, Plant and Equipment 70,000 50,000 Less: Accumulated Depreciation (40,000) (35,000) Long-term investments 20,000 65,000 Valuation Allowance - LT Investments 2,000 4.000 Totals $423,500 $529.000 Liabilities and shareholders' equity: Accounts payable - Merchandise Operating expenses payable Notes Payable Bonds payable Common stock Treasury Stock, Common Retained earnings Accumulated Other Comprehensive Income Totals $ 35,000 32,500 7,500 60,000 175,000 (8,000) 120,000 2.000 $423.500 $110,000 25,000 -0- 110,000 150,000 -O- 155,000 4,000 $529.000 The Girl The Circle Company Income Statement For the Year Ended December 31, 2020 Sales Cost of Goods sold Gross Profit Operating expenses (excluding depreciation expense) Depreciation expense Income from operations Other expenses: Loss on sale of long-term investment Net Income Other comprehensive Income - Unrealized holding gains/(loss) Comprehensive Income $571,000 372.500 $198,500 182,000 5,000 $ 11,500 (4,500) 7.000 (2.000) $ 5,000 Additional Information 2020: Cash dividends were declared and paid in 2020. Amount should be computed from relevant information provided in the PS. No stock dividends were declared or issued in 2020 No Property. Plant or Equipment was sold in 2020 During 2020, Property, Plant and Equipment of $7,500 was acquired by signing a $7,500 Notes Payable on the day of acquisition. All other acquisitions were paid with cash Treasury Stock was purchased during the year A portion of the Long-term investments were sold receiving cash during the year. Any change in Bonds Payable relates to repayment of principle (face) amounts. All sales of Common Stock (No par value) were for cash I need help preparing the Statement of Cash Flows of The Circle Company for the year ended December 31, 2020 using the direct method A