Question
The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance Sheet at
The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance Sheet at December 31 Cash Accounts Receivable Inventory Property, plant and equipment Less: Accumulated depreciation Patent, net Goodwill, net 2020 2019 8,300 7,000 10,000 5,500 6,000 6,500 44,000 27,000 -15,000 -6,000 3,000 0 7,000 10,000 63,300 50,000 Accounts payable 9,000 7,500 Wages payable 2,500 5,000 Long-term notes payable 20,000 15,000 Contributed capital 19,900 17,500 Retained earnings 11,900 5,000 63,300 50,000 Income Statement for 2020 Sales Cost of Goods Sold Depreciation expense Impairment loss-Goodwill Wages expense Other expenses Net Income Additional information concerning transactions and events during 2020: 1 Bought truck for cash 5 2 Acquired patent for cash 6 3 Paid cash dividends of 7 4 Purchased machinery by signing a 5 Issued new shares for 9 150,000 -87,000 -9,000 -3,000 -18,000 -22.500 10,500 $ 12,000 $ 3,000 on Dec 31, 2020 $ 3,600 $ 5,000 long-term note payable. $ 2,400 cash Instruction: [15 Marks) Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Statement of Cash Flows Cash flows from operating activities. Cash flows from operating activities Cash flows from investing activities Cash flows from investing activities Cash flows from financing activities Cash flows from financing activities Supplemental Disclosures for non-cash investing and financing activities (if any)
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