SYCAMORE CORPORATION

Comparative Statements of Financial Position

December 31

20202019

Cash.................................................................................. $43,000$24,000

Accounts receivable, net.......................................................... 35,00038,000

Inventory................................................................................ 114,00082,000

Land....................................................................................... 120,000190,000

Building................................................................................. 200,000200,000

Accumulated depreciation.................................................. (50,000)(40,000)

Equipment........................................................................... 1,030,000600,000

Accumulated depreciation............................................... (118,000)(94,000)

.......................................................................................... $1,374,000$1,000,000

Accounts payable (merchandise purchases only)............. $115,000$100,000

Salaries payable....................................................................... 20,000-0-

4% Bonds payable.................................................................. 300,000-0-

Common shares...................................................................... 750,000750,000

Retained earnings................................................................ 189,000150,000

.......................................................................................... $1,374,000$1,000,000

SYCAMORE CORPORATION

Income Statement

For year ended December 31, 2020

Sales.................................................................................. $1,075,000

Cost of goods sold................................................................... 640,000

Depreciation expense............................................................... 94,000

Salaries expense....................................................................... 140,000

Rent expense.............................................................................. 72,000

Other operating expenses, including bond interest.................... 14,000

Net loss on disposal of assets..................................................... 10,000

Income taxes expense................................................................ 21,000

Net income............................................................................. $84,000

Additional Data:

1.The bonds were sold at par on July 1, 2020.

2.Cash dividends were paid.

3.Land was sold for $80,000.

4.Old equipment was sold for $70,000.This equipment had cost $150,000 and had accumulated depreciation of $60,000 to date of sale. New equipment was purchased to replace it.

Instructions

Prepare statement of cash flows for calendar 2020, using the direct method.