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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. $ 628,000 484,000 144,000 Sunny Technologies Inc. Income Statement For Year Ended December 31, 2020 Revenues: Sales Cost of goods sold Gross Profit Expenses and other: Other expenses $ 156,000 Depreciation expense 26,400 Total operating expenses Operating Profit (Loss) Loss on sales of plant assets Profit (Loss) 182,400 (38,400) 21,600 $ (60,000) Sunny Technologies Inc. Post-Closing Trial Balance December 31 Account 2020 2019 Cash $ 64,000 $ 76,880 Receivables 43,200 31,200 Merchandise inventory 28,000 36,000 Property, plant and equipment 231,200 190,480 Accumulated depreciation 64,800 53,600 Accounts payable 51,840 62,400 Accrued liabilities 12,000 7,200 Notes payable 97,680 40,080 Common shares 49,680 8,000 Retained earnings 90,400 163,280 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 $100,000 were purchased during the year by paying cash of $32,800 and issuing a long-term note payable for the balance. Required: Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020. (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: Adjustments to reconcile profit to net cash inflows from operating activities: $ 0 Cash flows from investing activities: 0 O Cash flows from financing activities: 0 O
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