Terry Companys income statement and comparative balance sheets at December 31, 20120 and 2019, are as follows:

TERRY COMPANY

Income Statement

For Year Ended December 31, 2020

Sales revenue $385,000

Dividend income 5,000

--------------

390,000

Cost of goods sold $233,000

Wages expense 82,000

Advertising expense 10,000

Depreciation expense 11,000

Income tax expense 17,000

Loss on sale of investments 2,000 355,000

---------------- ---------------

Net income $ 35,000

TERRY COMPANY

Balance Sheets

12/31/2020 12/31/2019

ASSETS

Cash $8,000 $12,000

Accounts receivable 22,000 28,000

Inventory 94,000 66,000

Prepaid advertising 12,000 9,000

Long-term investmentsavailable for sale 30,000 41,000

Plant assets 178,000 130,000

Accumulated depreciation (72,000) (61,000)

---------------- ------------------

Total assets $272,000 $225,000

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LIABILITIES AND STOCKOLDERS EQUITY

Accounts payable $ 27,000 $ 14,000

Wages payable 6,000 2,500

Income tax payable 3,000 4,500

Common stock 139,000 125,000

Retained earnings 97,000 79,000

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Total liabilities and stockholders equity $ 272,000 $ 225,000

REQUIRED:

1. Calculate the change in cash that occurred during 2020. This is your check figure.

b. Calculate the amount of dividends that were paid by reconciling the Retained Earnings Statement

Beginning R/E

+ Net Income

- Dividends

Ending R/E

Three of these numbers are found on the statements above and the only missing element is dividends

2. Prepare a 2020 statement of cash flow using the indirect method. Make sure

Follow the format of the statement that I showed you in this weeks outline.