Question
The following financial information is obtained regarding Stallion Company: 12/31/20 12/31/19 Current Assets: Cash210,00046,000 Accounts Receivable (net)160,00090.000 Merchandise Inventory120,000150,000 Prepaid Expenses7,0002,000 Supplies3,0004,000 Non-Current Assets: Land100,000-0-
The following financial information is obtained regarding Stallion Company:
12/31/2012/31/19
Current Assets:
Cash210,00046,000
Accounts Receivable (net)160,00090.000
Merchandise Inventory120,000150,000
Prepaid Expenses7,0002,000
Supplies3,0004,000
Non-Current Assets:
Land100,000-0-
Plant Assets200,000200,000
Accumulated Depreciation(60,000)(40,000)
Total Assets740,000452,000
Current Liabilities:
Accounts Payable15,00033,000
Accrued Liabilities35,0009,000
Non-current Liabilities:
Notes Payable100,00020,000
Total Liabilities:150,00062,000
Common Stock ($1 Par Value)210,000140,000
Common Stock-APIC50,00010,000
Retained Earnings330,000240,000
Total Stockholders' Equity590,000390,000
Additional Data:
A) 2020 Net Income was $160,000
B) Land was acquired by taking out a Notes Payable for $90,000 and paying Cash for thebalance.
C) All Common Stock was issued for Cash.
REQUIRED:
Prepare the Statement of Cash Flow for Stallion Company under the Indirect Method.
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