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Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,
Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6,900 61.900 50,600 Accounts receivable Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,000 59,400 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 (34.900) (25,100) Accumulated depreciation-equipment Copyrights Total assets 46,100 50,400 $311,700 $293,200 Accounts payable $45,800 $40,100 3,900 6,000 8,100 4.000 8,100 10,100 Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings 59.900 69,400 100,000 100,000 30,000 30,000 55,900 33,600 Total liabilities & stockholders' equity $311,700 $293,200 SWIFTY INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,275 Cost of goods sold 174,600 Gross profit 164,675 Operating expenses 120,100 Operating income 44,575 Interest expense $11.200 Gain on sale of equipment 2,000 9,200 Income before tax 35,375 Income tax expense 7,075 Net income $28,300 Additional information: 1. Dividends in the amount of $6,000 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 $20,100 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).)
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