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The balance sheets for concerning transactions and events during 2020 are presented below. Jayda Company Balance Sheet Cash Accounts receivable (net) Inventory Long-term investments Property,
The balance sheets for concerning transactions and events during 2020 are presented below. Jayda Company Balance Sheet Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment (PP&E) Accumulated depreciation December 31 2020 2019 $47,900 $10,200 48,300 20,300 35,000 42,000 0 15,000 226,500 150,000 30.700> $327,000 $212,500 Difference $37,700 28,000 76,500 5,700 Accounts payable Accrued liabilities (e.g. salaries payable) Long-term notes payable Common stock Retained earnings $19,000 19,000 70,000 130,000 89,000 $327,000 $26,500 17,000 50,000 90,000 29,000 $212,500 2,000 20,000 40,000 60,000 Additional data for 2020 (all of this data below is properly reflected in the above balance sheets): 1. Sold the long-term investments for $23,000. The original cost was $15,000. 2. Declared and immediately paid cash dividends of $19,000 at year end in 2020. 3. Purchased machinery (PP&E) and gave a $60,000 long-term note payable. Hint: You may want to set up your own "T" account for Long-term Notes Payable. 4. Issued common stock for cash during the year. 5. Paid a $40,000 long-term note payable. 6. Sold, for $2,000, equipment (PP&E) with a cost of $10,000 and accumulated depreciation of $7,000. Instructions: Using the template provided on page 3, prepare a Statement of Cash Flows (using the Indirect Method) for 2020 for Jayda Company. Hints: You must compute net income (the RE "T account should help). (Also, you must complete the "T" accounts on page 2). 1
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