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

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

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

12/31/20

12/31/19

Cash

$6,000

$6,900

Accounts receivable

62,400

50,800

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

35,100

18,100

Inventory

40,100

60,400

Prepaid rent

5,100

4,000

Equipment

152,400

131,000

Accumulated depreciationequipment

(34,700

)

(24,800

)

Copyrights

45,500

49,900

Total assets

$311,900

$296,300

Accounts payable

$45,900

$39,900

Income taxes payable

4,000

6,000

Salaries and wages payable

8,100

4,000

Short-term loans payable

8,100

10,000

Long-term loans payable

59,500

68,700

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

56,300

37,700

Total liabilities & stockholders equity

$311,900

$296,300

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

Sales revenue

$337,125

Cost of goods sold

176,500

Gross profit

160,625

Operating expenses

120,600

Operating income

40,025

Interest expense

$11,400

Gain on sale of equipment

2,000

9,400

Income before tax

30,625

Income tax expense

6,125

Net income

$24,500

Additional information:

1. Dividends in the amount of $5,900 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 direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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