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The condensed income statement and comparative balance sheet of Donald Corporation as of December 31, 2019 and 2018, are provided below. Other financial data is

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The condensed income statement and comparative balance sheet of Donald Corporation as of December 31, 2019 and 2018, are provided below. Other financial data is also given. DONALD CORPORATION Condensed Income Statement Year Ended December 31, 2019 Revenues $680,500 Costs and Expenses Cost of Goods Sold 429,500 Salaries Expense 125,500 Depreciation Expense 15,500 Advertising Expense 15,400 Utilities Expense 18,500 Total Costs and Expenses $684,400 Net Income Before Income Taxes 76,100 Income Taxes Expense 19,025 Net Income After Income Taxes $ 57,075 2019 2018 $ 82,625 $ 76,000 56,400 52,500 49,500 54,750 8,500 18,750 130,000 105,000 (26,000) (10,500) $301,025 $288,500 DONALD CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 Assets Cash Accounts Receivable (Net) Merchandise Inventory Prepaid Advertising Property. Plant, and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Liabilities Accounts Payable Salaries Payable Unearned Revenues Income Taxes Payable Note Payable-2021 Total Liabilities Stockholders' Equity Common Stock ($2 par) Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Eouitv 50,950 79,750 5,000 3,750 4,250 5,500 6,750 5,500 35,000 $ 66,950 $129.500 85,000 149,075 $234,075 $301.025 55,000 104,000 $159,000 $288.500 Additional information for the year that is pertinent to its preparation follows. a. No items of property, plant, and equipment were disposed of during the year. b. Pald cash for the additions to property, plant, and equipment during the year . c. Pald $12,000 dividends on the common stock in cash during the year. d. Issued common stock at par value for cash. e. Pald cash to retire the long-term note payable. Required: Prepare a statement of cash flows for Donald Corporation for 2019. (Amounts to be deducted should be indicated with a minus sign.) DONALD CORPORATION Statement of Cash Flows Year Ended December 31, 2019 Cash flows from operating activities Adjustments: Total adjustments Cash Flows from investing activities Cash flows from financing activities Analyze: If Donald Corporation had written off an uncollectible account receivable of $5,000 during this fiscal period, what adjustment, any, would be required on the statement of cash flows? Increase in cash flow or net income Decrease in cash flow or net income No effect

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