The comparative balance sheets for Skysong Corporation show the following information. December 31 2020 2019 Cash $33,500 $12,900 Accounts receivable 12,400 10,000 Inventory 12,100 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 Patents 5,000 6,300 $107,800 $90,900 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -0- 6,000 Accounts payable 5,000 3,000 Dividends payable -0- 4,900 Notes payable, short-term (nontrade) 3,000 4,100 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. 2. 3. 34 4. 5. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 69 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,500 were paid in cash. 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).) SKYSONG CORPORATION Statement of Cash Flows Cash, January 1, 2020 Cash, December 31, 2020 Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Noncash Investing and Financing Activities +A +A SKYSONG CORPORATION Statement of Cash Flows Adjustments to reconcile net income to +A +A Decrease in Inventory Loss on Sale of Equipment Purchased Equipment by Issuing Notes Payable Loss from Flood Damage Sale of Equipment Decrease in Accounts Receivable (Net) Cash Paid During the Year for Interest Sale of Investments Gain on Sale of Equipment Increase in Inventory Depreciation Expense Proceeds from Flood Damage to Building Retired Notes Payable by Issuing Common Stock Patent Amortization Loss on Sale of Investments Decrease in Accounts Payable Payment of Short-term Note Payable Gain from Flood Damage Purchase of Equipment Gain on Sale of Investments Cash Paid During the Year for Income Taxes Net Income Increase in Accounts Receivable (Net) Increase in Accounts Payable Payment of Dividends SKYSONG CORPORATION Statement of Cash Flows Adjustments to reconcile net income to +A $ Supplemental disclosures of cash flow information: +A Supplemental disclosures of cash flow information: +A +A Th +A +A