Teal Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Teal as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

TEAL COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31
		2020		2019
Current assets
Cash		$28,100		$20,000
Accounts receivable		75,000		58,300
Inventory		220,600		247,900
Prepaid expenses		9,100		7,000
Total current assets		332,800		333,200
Plant assets
Plant assets		601,900		506,700
Less: Accumulated depreciationplant assets		150,600		124,800
Net plant assets		451,300		381,900
Total assets		$784,100		$715,100
Current liabilities
Accounts payable		$123,400		$113,800
Salaries and wages payable		47,600		71,900
Interest payable		26,900		25,100
Total current liabilities		197,900		210,800
Long-term debt
Bonds payable		70,000		100,000
Total liabilities		267,900		310,800
Stockholders equity
Common stock, $10 par		370,000		280,000
Retained earnings		146,200		124,300
Total stockholders equity		516,200		404,300
Total liabilities and stockholders equity		$784,100		$715,100

TEAL COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020

Sales revenue $1,253,000

Cost of goods sold 717,300

Gross profit 535,700

Expenses

Salaries and wages expense 252,500

Interest expense 74,600

Depreciation expense 25,800

Other expenses 8,100

Total expenses 361,000

Operating income 174,700

Income tax expense 43,000

Net income $131,700

The following is additional information concerning Teals transactions during the year ended May 31, 2020.

1.		All sales during the year were made on account.
2.		All merchandise was purchased on account, comprising the total accounts payable account.
3.		Plant assets costing $95,200 were purchased by paying $25,200 in cash and issuing 7,000 shares of stock.
4.		The other expenses are related to prepaid items.
5.		All income taxes incurred during the year were paid during the year.
6.		In order to supplement its cash, Teal issued 2,000 shares of common stock at par value.
7.		Cash dividends of $109,800 were declared and paid at the end of the fiscal year.

Direct Method:

Indirect Partial:

TEAL COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 1 Cash Flows from Operating Activities $ 1236300 Cash Received from Customers Cash payments: Cash Payment to Suppliers Cash Payment to Employees Cash Payment for interest Cash Payment for Income Taxes Cash Payment for Other Expenses Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Plant Assets Cash Flows from Financing Actitles Cash Received from Common Stock Issue Cash Pald for Dividends Cash Pald to Retire Bonds Payable Payable Net Cash Used by Financing Activities Net Increase in Cash Cash, June 1, 2019 Cash, May 31, 2020 TEAL COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 131700 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Decrease in Salaries and Wages Payable $ Depreciation Expense Increase in Prepaid Expenses Increase in interest Payable increase in Accounts Recevable Increase in Accounts Payable Decrease in Inventory Net Cash Provided by Operating Activities