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Sweet Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SWEET INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,

Sweet Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

SWEET INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

12/31/20

12/31/19

Cash

$6,000

$6,900

Accounts receivable

62,500

50,900

Short-term debt investments (available-for-sale)

35,200

17,900

Inventory

40,300

59,500

Prepaid rent

4,900

4,100

Equipment

153,100

129,600

Accumulated depreciationequipment

(35,200

)

(24,700

)

Copyrights

45,600

50,500

Total assets

$312,400

$294,700

Accounts payable

$45,500

$40,000

Income taxes payable

4,000

6,100

Salaries and wages payable

8,000

3,900

Short-term loans payable

8,000

9,900

Long-term loans payable

59,400

68,800

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,500

36,000

Total liabilities & stockholders equity

$312,400

$294,700

SWEET INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020

Sales revenue

$337,300

Cost of goods sold

174,000

Gross profit

163,300

Operating expenses

119,100

Operating income

44,200

Interest expense

$11,600

Gain on sale of equipment

1,900

9,700

Income before tax

34,500

Income tax expense

6,900

Net income

$27,600

Additional information:

1. Dividends in the amount of $6,100 were declared and paid during 2020.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2020.

Prepare a statement of cash flows using the indirect method

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