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Thank you for your help! The following are the financial statements of Larkspur, Inc.. Larkspur, Inc. Comparative Balance Sheets December 31 Assets 2020 2019 $37,400
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The following are the financial statements of Larkspur, Inc.. Larkspur, Inc. Comparative Balance Sheets December 31 Assets 2020 2019 $37,400 $20,500 Cash Accounts receivable 32,900 18,100 Inventory 30,600 20,000 Equipment 77,900 59,700 Accumulated depreciation-equipment (29,100) (23,500) $131,500 $113,000 Total Liabilities and Stockholders' Equity Accounts payable $28,300 $16,500 Income taxes payable 7,500 8,200 Bonds payable 27,900 32,800 Common stock 18,600 14,200 Retained earnings 49,200 41,300 $131,500 $113,000 Total Larkspur, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $241,800 175,200 Cost of goods sold Gross profit 66,600 Operating expenses 24,600 Income from operations 42,000 3,900 Interest expense Income before income taxes 38,100 Income tax expense 8,500 $29,600 Net income Additional data: 1. Dividends declared and paid were $21,700 2. During the year, equipment was sold for $9,700 cash. This equipment cost $18,200 originally and had a book value of $9,700 at the time of sale. 3. All depreciation expense, $14,100, is in the operating expenses. 4. All sales and purchases are on account. 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).) Larkspur, Inc. Statement of Cash Flows Adjustments to reconcile net income toStep by Step Solution
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