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The comparative balance sheets for Teal Corporation show the following information. December 31 2020 2019 Cash $33,200 $13,000 12,200 10,100 12,100 8.900 -0- 2.900 Accounts
The comparative balance sheets for Teal Corporation show the following information. December 31 2020 2019 Cash $33,200 $13,000 12,200 10,100 12,100 8.900 -0- 2.900 Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents -0- 30.100 45,300 20,200 5,000 6,300 $107,800 $91,500 $3,000 $4,500 2,000 4,500 -0- 6,000 5,000 2.900 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings -0- 3,000 5,000 4,000 25,000 31.000 43,000 33.000 20,800 6,600 $107,800 $91,500 Additional data related to 2020 are as follows. 1. 2. 3. 4. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock Cash dividends paid were $5,000. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 5. 6. 7. 8. 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 eg. (15,000).) TEAL CORPORATION Statement of Cash Flows $ $ Adjustments to reconcile net income to > V $
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