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Sunny Technologies Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019, and 2020 is shown below along with some

Sunny Technologies Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019, and 2020 is shown below along with some other information.

Sunny Technologies Inc.
Income Statement
For Year Ended December 31, 2020
Revenues:
Sales $ 627,200
Cost of goods sold 483,200
Gross Profit 144,000
Expenses and other:
Other expenses $ 155,200
Depreciation expense 25,600
Total operating expenses 180,800
Operating Profit (Loss) (36,800)
Loss on sales of plant assets 20,800
Profit (Loss) $ (57,600)

Sunny Technologies Inc.
Post-Closing Trial Balance
December 31
Account 2020 2019
Cash $ 62,400 $ 76,800
Receivables 41,600 30,400
Merchandise inventory 27,200 35,200
Property, plant and equipment 230,400 190,400
Accumulated depreciation 64,000 52,800
Accounts payable 49,600 62,400
Accrued liabilities 11,200 6,400
Notes payable 97,600 40,000
Common shares 49,600 8,000
Retained earnings 89,600 163,200

Other information regarding Sunny and its activities during 2020:

  1. Assume all accounts have normal balances.
  2. Cash dividends were declared and paid during the year.
  3. Plant assets were sold during the year.
  4. Plant assets worth $99,200 were purchased during the year by paying cash of $32,000 and issuing a long-term note payable for the balance.

Other information:

  1. All accounts payable balances result from merchandise purchases.
  2. All sales are credit sales.
  3. All credits to accounts receivable are receipts from customers.
  4. All debits to accounts payable result from payments for merchandise.
  5. All debits and credits to accrued liabilities result from other expenses.

Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows and loss as negative amounts.)

SUNNY TECHNOLOGIES INC.
Statement of Cash Flows
For Year Ended December 31, 2020
Cash flows from operating activities:
Payment of cash dividends
$0
Cash flows from investing activities:
0
Cash flows from financing activities:
0
$0

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