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Time Atter c (Don't put $ and , into the blanks. Use () to express negative figures.) Reynolds Company Comparative Balance Sheets December 31 Assets
Time Atter c (Don't put "$" and "," into the blanks. Use () to express negative figures.) Reynolds Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $81,000 $45,000 Accounts Receivable 41,000 62,000 Inventories 151,450 142,000 Prepaid Expenses 15,280 21,000 Land 105,000 130,000 Buildings 200,000 200,000 Accumulated Depreciation - buildings (60,000) (40,000) Equipment 221,000 155,000 Accumulated Depreciation - equipment (45.000) (35,000) Totals $709,730 $680.000 Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Totals $47,730 260,000 200,000 202.000 $709,730 $40,000 300,000 160,000 180,000 $680.000 Additional Information: Operating expenses include depreciation expense of $42,000 and charges from prepaid expense of $5,720. Land was sold for cash at book value. Cash dividends of $20,000 were paid. Net income for 2020 was $42,000. Equipment was purchased for $88,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock. . Instructions: Fill in the following a statement of cash flows for the year ended December 31, 2020, using the indirect method. Reynolds Company Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income $42,000 Adjustments to reconcile net income to net cash reconcile net income Depreciation expense Gain / Loss on disposal of equipment Change in accounts receivable UIT Change in inventory Change in prepaid expenses Change in accounts payable Net cash flows from operating activities Cash flows from investing activities Sale of land Sale of equipment UN Purchase of equipment Net cash flows from investing activities Cash flows from financing activities Payment of cash dividends Net change in cash ITUN Cash at beginning of period Cash at end of period Non investing and financing activities
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