The accounts balances of ZZ Corp. at December 31 appear below:

Debits

2020

2019

Cash

$

40,000

$

30,000

Accounts receivable

40,000

30,000

Merchandise inventory

122,000

126,000

Prepaid expenses

4,000

6,000

Land

10,000

30,000

Buildings

220,000

160,000

Equipment

123,000

80,000

$

559,000

$

462,000

Credits

Accounts payable

$

48,000

$

50,000

Accumulated depr

86,000

72,000

Note payable, due 2023

70,000

55,000

Common shares

300,000

250,000

Retained earnings

55,000

35,000

$

559,000

$

462,000

The following Additional Information is available:

i. Net income for the year was $40,000; income taxes expense was $4,000 and depreciation recorded on building and equipment was $27,000.

ii. Equipment costing $30,000 was purchased; one-half was paid in cash and a 4-year promissory note signed for the balance.

iii. Equipment costing $50,000 was purchased in exchange for 6,000 common shares.

iv. At year-end, Equipment that had originally cost $37,000 were sold for $15,000. At the date of sale, the accumulated depreciation for the asset was $11,000. The gain/loss was reported in net income.

v. An addition to the building was built during the year.

vi. Land costing $22,000 was sold for $26,000 cash during the year. The related gain was reported in the income statement.

vii. Cash dividends were paid.

Prepare a statement of cash flows for the year ended December 31 , 2020

The accounts balances of Zz Corp. at December 31 appear below: Dehits 20:20 2019 $ 40,000 S 30,000 40,000 30,000 Cash Accounts receivable Merchandise inventory Prepaid expenses Land Buildings Equipment 122,000 126,000 4,000 6,000 10,000 30,000 220,000 160,000 123.000 80,000 S 559,000 S 462,000 Credits Accounts payable Accumulated depe Note payable, due 2023 Common shares Retained earnings $ 48,000 S 50,000 86,000 72,000 70,000 55,000 300,000 250,000 55,000 35,000 $ 559,000 S 462,000 The following Additional Information is available: i. Net income for the year was $40,000; income taxes expense was $4,000 and depreciation recorded on building and equipment was $27,000. ii. Equipment costing $30,000 was purchased; one-half was paid in cash and a 4-year promissory note signed for the balance. ii. Equipment costing $50,000 was purchased in exchange for 6,000 common shares. iv. At year-end, Equipment that had originally cost $37,000 were sold for $15,000. At the date of sale, the accumulated depreciation for the asset was $11,000. The gain/loss was reported in net income. v. An addition to the building was built during the year. vi. Land costing $22,000 was sold for $26,000 cash during the year. The related gain was reported in the income statement vii. Cash dividends were paid. Prepare a statement of cash flows for the year ended December 31, 2020