The Sunshine Cash Cow Co

Balance Sheet as of December 31

	2019	2020
Assets
Cash	$ 1900	$ 3644
Accounts receivable (net)	3400	3240
Marketable securities (at cost)	2300	4400
Allowance for change in value of marketable securities	900	1230
Inventory	8800	9160
Prepaid items	1600	1430
Investments (long term)	7600	5900
Land	15500	15500
Buildings and equipment	33000	46800
Less: Accumulated depreciation	(20000)	(21300)
Total Assets	$ 55000	$ 70004
Liabilities & SH Equity
Accounts payable	$ 4200	$ 3600
Income taxes payable	2400	2364
Deferred taxes payable	1200	1602
Wages payable	1800	2850
Interest payable	0	480
Note payable (long term)	4620	0
12% Bonds payable	0	12000
Discount on bonds payable	(0 )	(348)
Preferred stock, $100 par	9800	9800
Common stock, $10 par	14700	18000
Additionalpaid-in capital	9100	10420
Unrealized increase in value of marketable securities	900	1230
Retained earnings	6280	8006
Total Liab. and SH Equity	$ 55000	$ 70004

The Sunshine Cash Cow Company Income Statement

For the Year Ended December 31, 2020

Sales		$ 40530
Cost of goods sold		(20090)
Depreciation expense		(2500)
Wages expense		(12600)
Other operating expenses		(1600)
Bond interest expense		(492)
Dividend revenue		880
Gain on sale of investments		770
Loss on sale of equipment		(276)
Income tax expense		(2050)
Discontinued operations loss:	(210)
Net of reduction of income tax liability	84	(126)
Net Income		$ 2446

Other information related to the Company:

1. The firm declared and paid dividends of $720 during the year.
2. Long-term non-marketable investments that cost $1700 were sold, resulting in a $770 gain.
3. The long-term note payable was paid by issuing 330 shares of common stock at the beginning of the year.
4. On January 10, the company discontinued an operating unit comprised of equipment with an original cost of $700 and a book value of $420. Sale of the equipment yielded a before-tax loss from discontinued operations of $210.
5. The firm sold equipment with an original cost of $2300 and a book value of $1380, resulting in a $276 loss.
6. The firm purchased new equipment for $16800.
7. 12% bonds payable were issued on September 1, 2020 at 97% of face value. They mature on September 1, 2030. The company uses the straight-line method to amortize the discount.
8. Taxable income was less than pretax accounting income, resulting in a $402 increase in deferred taxes payable.
9. Short-term marketable securities were purchased at a cost of $2100. The portfolio was increased by $330 to a $5630 fair value at year-end by adjusting the related allowance account.

To DO: Using this information, prepare (1) the firms Statement of Cash Flows (all three sections) for 2020 using the direct method for the operating activities section, including a schedule of any non-cash investing and financing activities at the bottom of this statement, and (2) a separate schedule of the operating activities section (only) using the indirect method.

T Normal 1 No Spac... Heading 1 Heading 2 Tite Diciale Select- Paragraph Styles Editing Voir Snt- Balance Sec Dec 31 The CashCow Carey Farthe Texaded Dec 11,200 3 Castotood solid 14336 3010 E. 250 C Accedesse) NANCE Cord ALLOW in valoa mukahle ce $ 1.200 3400 2300 53646 5240 4400 900 3300 1600 800 B3508 1230 9100 140 Wp Ohr Opp Bus pense De Galvestos PoEala u Taconet e co action eficama Neri VO 200) 2850 Teho CODE LE Sets (long) di degli LIRE Acid detect Total Assets 15.500 46100 Ce091 Lisbes & SHL Accounts payable Iscometeus of the year 3400 2364 1002 2850 40 TWO 0 low 2001 (348) 600 Wage Coret Nose payable to 1256 Bandar Discount on bonds payable Defnedicto par Como tockope Ration. Unrealed incided marotable securities E. total Lab and SR it 9100 O formation related to the Company 1. The fim declared and paid hof 720 during the year 2. Lepas table in the con 51700wold, resulting in 1770 g The long term note payable was paid by 330 hrs of cock Os January 10, the company dood en permanent college cril cost of $700 and a book val of 5430 Sale of the word be trom discented operation of 210 The tim sold age with ripal.com of $200 and a book (1310 resulting 5376 6. The firm paded were for $10800 1 boods payable wereld on September 1, 2020 1975 of face. They Sep 1, 2010. The company whered to be discott Table income accounting income, 5497 free payable 9. Some ci were purchased at com 100. The portfolio by 5330155030 far valdymo FEQUIRED in some pare (t) the Sete Calon tallere tid for 3000 g the died for the operating actietiniai schedule of my access of (2) led the section only wanted het fees. Only to teatter you wanted out beslot) The ho de la pena SoCashow for Samsport Focus 900 G 1210 300 ME Fe Freedte DOW Layout Det References Review Mariling View felo DU New Rom 12 A A A A web X X ADA 1 Normal 1 No Spa SE DE N Font Paragraph The Cow Co Baliace of December 31 2019 2020 Assets $ 1900 3400 53644 5240 2300 4400 Accounts receivable net Marketable securities (COG) Allowance for chempe in value of marketable securities Inventory Prepair items Latestuents (long term Land Buildings and equipment Accued depreca.com Total Assets 900 3100 1600 1800 13500 33000 120000 1230 960 1430 5900 15500 46000 BBC) S20004 54200 2400 1200 1000 $3800 2364 1602 30 30 0 4620 0 Liabiline & SH Equity Accounts paya Tecome Daterred to payable Wares payable Interest rabia Notepayable contem 12. Bonduvable Discount on bonis pava Preferred to par Costock 10 par Additional cap realised creatis valget markable scrie Feed earning Torb and SHEQUE 9930 14:00 90 0400 SEO 16000 TOTO 900 1230 508 6280 555 words o De here to search Shar: Help AaB 00 Find Replace Select Dictate 1 No Spac. Heading 1 Heading 2 Sensitivity Title Editing Voice Sensitivity Styles The Sumchine Cash Cow Company Income Statement For the Year Ended December 31, 2020 Sales Cost of roods sold Depreciation expense Wages expense Other operating expenses Bond interest expense Dividend revente Gain on sale oftvestments Los on sale of equipment Income tax expense Discontinued operations low Net of reduction of income stabilis Net Income $40550 (200902 (2500) (126002 (1600) (492) 880 70 (26) (2050) 210) (126) Ode information related to the Company 1. The firm declared and paid dividends of 5720 daring the year 2. Long-tao-maktable investments that cost 51700 were sold resulting in a 5770 gain 3. The long-term sot pavable was paid by issuing 330 shares of common stock at the beginning of the year 4. Os January 10, the company discontinued operating unit comprised of equipment with an beigusal cost of $700 and a book value of 5420 Sale of the equipment yielded a before the Joss from discontinued operations of $210. 5. The firs sold equipment with an original cost of $2300 and a book value of $1580, resulting 13276 los 6. The firm parchased mer equipo for $16800, 1125 boude payable weed on September 1, 2020 3:979 of face value. They mature September 1, 2030. The company uses the straight line metod to mortise the discount 3. Tale come a les tan pret accounting income, real ma 5402 Increase derred tistes payable 9. She matricable securities were purchased at a cost of $2100. The portfolio was and by 3330 to 55630 fair value at year-end by adjusting the related alle account PEQUIRED Uung this informations prepare (1) the finals Staat of Cash Flas all the section for 2030 in the direthod for the operating action includes det and financiation of dois met of operate activities Action only using the di method COSC Onlytur in reduce the instruction papers you worked out the section The methods are Cruise Layer to sembla Sudet of for S'il neport Crocus RX A 40 af ject (1) - Upload Pending View Help Review OF References Mailings a 4 > EEEEE ALT T Normal * No Spac... Heading 1 Heading 2 Title S Ed Styles Paragraph The Sunshine Cash Cow Co Balance Sheet as of December 31 2019 2020 Assets $ 1900 3400 2300 $3644 3240 4400 Accounts receivable (tel Marketable securities (at cost) Allowance for change in value of maketable securities Inventory Prepaid stems Investments (long term Land Buildings and equipment Less: Accumulated desanciation Total Assets 900 8800 1600 7600 15500 33000 20000 S 55000 1230 9160 1430 5900 15500 46800 Le 1300 $70004 Liabilities & SH Equity Accounts payable Income taxe parable Deferred taxes povable Wares payable Interest raakte Note povable long term 1295 Bonds payable Discount on bondsvable Preferred stock $100 per Common stock Sio par Adid in capital United increase in value of $ 4200 2400 1200 1800 0 4620 0 2 $3600 2364 1602 2850 480 0 12000 345 9800 18000 10420 9800 14700 9100 900 6250 S32000 10.30 8006 S70004 Reted earnings Total Liab and SH Equity l 1 Normal 1 No Spac... Heading 1 Heading 2 EE 1. - Title Paragraph Styles The Sunshine Cash Cow Company Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Depreciation expense Wages expense Other operating expenses Bond interest expense Dividend revenue Gain on sale of investments Loss on sale of equipment Income tax expense Discontinued operations loss Net of reduction of income tax liability Net Income $ 40530 (20090) (2500) (12600) (1600) (492) 880 770 (276) (2050 210) 84 (126) S2446 Other information related to the Company 1. The firm declared and paid dividends of $720 during the year 2. Long-term non-marketable investments that cost $1700 stere sold, resulting in a $770 gain 3. The long-term note payable was paid by issuing 330 shares of common stock at the beginning of the Year 4. On January 10, the company discontinued an operating unit comprised of equipment with an Original cost of $700 and a book value of $420. Sale of the equipment yielded a before tax loss from discontinued operations of $210 3. The firm sold equipment with an original cost of $2300 and a book value of $1380, rating in 5276 lote 6. The firm purchased tw equipment for 515800 7:12 bonda payables sued on September 1, 2020 at 9756 office sale. They are on September 1, 2030. The compass the trail-line method to more the discount Trouble incwadun pretis counting income, tingla 5402 nente defends payable 9. Short term metable and were purchased at out of 52100 The portfolio inted 53503610 value and at the related towance account REQUIRED this forution, prepare the timesta (a Upload Pending ces Mailings Review View Help + AU 1 Normal 1 No Spac... Heading 1 Heading 2 TO v Styles Paragraph Other information related to the Company 1. The firm declared and paid dividends of $720 during the year. 2. Long-term non-marketable investments that cost $1700 were sold, resulting in a $770 gain. 3. The long-term note payable was paid by issuing 330 shares of common stock at the beginning of the year 4. On January 10, the company discontinued an operating unit comprised of equipment with an original cost of $700 and a book value of $420. Sale of the equipment yielded a before-tax loss from discontinued operations of $210. 5. The firm sold equipment with an original cost of $2300 and a book value of $1380, resulting in a $276 loss. 6. The firm purchased new equipment for $16800 7. 12% bonds payable were issued on September 1, 2020 at 97% of face value. They mature on September 1, 2030. The company uses the straight-line method to amortize the discount. 8. Taxable income was less than pretax accounting income, resulting in a $402 increase in deferred taxes payable. 9. Short-term marketable securities were purchased at a cost of $2100. The portfolio was increased by $330 to a $5630 fair value at year-end by adjusting the related allowance account REQUIRED: Using this information, prepare (1) the firm's Statement of Cash Flows all three sections) for 2020 using the direct method for the operating activities section, including a schedule of any non-cash investing and financing activities at the bottom of this statement, and (2) a separate schedule of the operating activities section (only) using the indirect method Ale the first sheet turned in should be a cover sheet which includes your name ets. Only turn in required items (exclude these instructions and paper on which you worked out the solution) The statement should be properly prepared (organized, labeled, type written, ete) to resemblea Statement of Cash Flow for Sunshine's annual report. I" D C 1 Normal 1 No Spac... Heading 1 Heading 2 Title Paragraph E Styles The Sunshine Coah Cow Co Balance Sheet as of December 31 2019 2020 $ 1900 3400 $3644 3240 2300 14400 Assets Cash Accounts receivable (net) Marketable securities (at cost) Allowance for change in value of marketable securities Inventory Prepaid items Investments (long term Land Buildings and equipment Less: Accumulated depreciation Total Assets 900 8800 1600 7600 15500 33000 120000) S 55000 1230 9160 1430 5900 15500 46800 21300 $170004 Liabilities & SH Equity Accounts payable Income taxes payable Deferred faxes payable Wages payable Interest payable Note payable (long term) 129 Bonds payable Discount on bonds payable Preferred stock $100 par Common stock. Sto par Additional aid in capital Blue of $ 4200 2400 1200 1500 0 4620 0 ( 0800 14700 9100 S 3600 2364 1602 2850 480 0 12000 (348) 9800 18000 10420 long term Land Buildings and equipment Less: Accumulated depreciation Total Assets 760 15500 33000 20000) $55000 150 46800 (21300) $70004 $ 4200 2400 1200 1800 0 4620 0 Liabilities & SH Equity Accounts payable Income taxes payable Deferred taxes payable Wages payable Interest payable Note payable (long term 12% Bonds payable Discount on bonds payable Preferred stock $100 par Common stock, $10 par Additional paid-in capital Unrealized increase in value of marketable securities Retained earrings Total Liab. and SH Equity $3600 2364 1602 2850 480 0 12000 (348) 9800 18000 10420 9800 14700 9100 900 6280 $ 55000 1230 8006 $ 70004 Paragraph 22 Styles The Sunshine Cash Cow Company Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Depreciation expense Wages expense Other operating expenses Bond interest expense Dividend revenue Gain on sale of investments Loss on sale of equipment Income tax expense Discontinued operations loss: Net of reduction of income tax liability Net Income $ 40530 (20090) (2500) (12600) (1600 (492) 880 770 (276) (2050) (210) 84 (126) $ 2446 Other information related to the Company: 1. The firm declared and paid dividends of $720 during the year. 2. Long-term non-marketable investments that cost $1700 were sold, resulting in a $770 gain. 3. The long-term note payable was paid by issuing 330 shares of common stock at the beginning of the year. 4. On January 10, the rampany discontinued an operating unit comprised of equipment with an book value of $420. Sale of the equipment yielded a before-tax resulting Syres LOSS on sale of equipment Income tax expense Discontinued operations loss: Net of reduction of income tax liability Net Income (LON (2050) (210) 84 (126) S 2446 Other information related to the Company 1. The firm declared and paid dividends of $720 during the year. 2. Long-term non-marketable investments that cost $1700 were sold, resulting in a $770 gain, 3. The long-term note payable was paid by issuing 330 shares of common stock at the beginning of the year. 4. On January 10, the company discontinued an operating unit comprised of equipment with an original cost of $700 and a book va of $420. Sale of the equipment yielded a before-tax loss from discontinued operations of $210. 5. The firm sold equipment with an original cost of $2300 and a book value of $1380, resulting in a $276 loss. 6. The firm purchased new equipment for $16800. 7. 12% bonds payable were issued on September 1, 2020 at 97% of face value. They mature on September 1, 2030. The company uses the straight-line method to amortize the discount 8. Taxable income was less than pretax accounting income, resulting in a $402 increase in deferred taxes payable. 9. Short-term marketable securities were purchased at a cost of $2100. The portfolio was increased by $330 to a $5630 fair value at year-end by adjusting the related allowance account REQUIRED: Using thr information, prepare (1) the firm's Statement of Cash Flows (all three sections) for 2020 using the direct method for the operating activities section, including a schedule of any non-cash investing and financing activities at the bottom of this statement, and (2) a separate schedule of the operating activities section (only using the indirect method. Ale the first sheet turned in should be cover sheet which includes your name ete. Only turn non red item exclude these instructions and paper on which you worked out the solution). 6. The firm purchased new equipment for $16800. 7. 12% bonds payable were issued on September 1, 2020 at 97% of face value. They mature on September 1, 2030. The company uses the straight-line method to amortize the discount 8. Taxable income was less than pretax accounting income, resulting in a $402 increase in deferred taxes payable. 9. Short-term marketable securities were purchased at a cost of $2100. The portfolio was increased by $330 to a $5630 fair value at year-end by adjusting the related allowance account To DO: Using this information, prepare (1) the firm's Statement of Cash Flows (all three sections) for 2020 using the direct method fof the operating activities section, including a schedule of any non-cash investing and financing activities at the bottom of this statement, and (2) a separate schedule of the operating activities section (only) using the indirect method