Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following comparative balance sheets 2019 & 2020 and additional information for National Company are given: Assets Dec. 31, Dec. 31, 2020 2019 Cash $156,000

image text in transcribed
image text in transcribed
The following comparative balance sheets 2019 & 2020 and additional information for "National Company" are given: Assets Dec. 31, Dec. 31, 2020 2019 Cash $156,000 $26,000 Accounts Receivable 52,000 48,000 Inventory and supplies 30,000 58,000 Investments 0 36,000 Machines 114,000 104,000 Accumulated depreciation-Machines (28,000) (20.000) Total Assets $324,000 $252,000 Liabilities & Stockholders' Equity Note payable Bonds payable (long-term) Common Stock Retained Earnings Total Liabilities & Stockholders' Equity $ 74,000 74,000 80,000 96,000 $324,000 $ 54,000 94,000 44,000 60.000 $252,000 Income Statement & Additional information: 1. Net income for the current year ending December 31, 2020 is $58,000. 2. Sold investments for cash, cost $36,000 and resulting in $6,000 gain. 3. The only changes affecting retained earnings are net income and cash dividends paid. 4. All the following transactions are in cash: Purchased new machines; repay bonds payable: and issuance common stock. Required: Prepare the full statement of cash flows using indirect method for the year ended December 31, 2020. Income Statement & Additional information: 1. Net income for the current year ending December 31, 2020 is $58,000. 2. Sold investments for cash, cost $36,000 and resulting in $6,000 gain. 3. The only changes affecting retained earnings are net income and cash dividends paid. 4. All the following transactions are in cash: Purchased new machines; repay bonds payable; and issuance common stock. Required: Prepare the full statement of cash nows using indirect method for the year ended December 31, 2020 (PLEASE PROVIDE EACH AMOUNT / ITEM IN A SEPARATE LINE) For the toolbar.press ALT-F10 (PC) or ALT+FN+F10 (Mac). BIY & Paragraph Arial 10pt EEA LIXO @ Q6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Humor And Other Oxymorons

Authors: Mr Mike Jacka

1st Edition

0991280903, 978-0991280902

More Books

Students also viewed these Accounting questions