TRIMMER INC.

Comparative Balance Sheet December 31

	2020	2019
Assets
Cash	35,000	20,000
Accounts receivable	112,000	103,000
Inventory	425,000	460,000
Property, plant and equipment	750,000	800,000
Accumulated depreciation	- 375,000	- 330,000
Total assets	947,000	1,053,000
Liabilities & Shareholders' Equity
Accounts payable	42,000	68,000
Income taxes payable	18,000	13,000
Bonds payable	825,000	860,000
Common shares, 10,000 shares issued	55,000	42,000
Retained earnings	7,000	70,000
Total liabilities and shareholders equity	947,000	1,053,000

TRIMMER INC.

Income Statement Year Ended December 31, 2020

Sales	$932,000
Cost of goods sold	608,000
Gross profit	324,000
Operating expenses	294,000
Profit from operations	30,000
Interest expense	12,000
Loss on sale of equipment	15,000
Profit before income taxes	3,000
Income tax expense	5,000
Net loss	-$2,000

The following additional data were provided:

1. During the year, equipment was sold. This equipment cost $75,000 originally and had a carrying amount of $32,000 at the time of sale.

2. During the year, replacement equipment was purchased for $25,000 cash.

3. All depreciation expense is in the operating expenses category.

4. All sales and purchases are on account.

5. Accounts payable pertain to merchandise suppliers.

6. All operating expenses except for depreciation were paid in cash.

Instructions

a) Prepare a cash flow statement for TRIMMER Inc., using the direct method or indirect method.

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Operating Activities
Cash provided by (used) in operating activities
Investing Activities
Cash provided by (used) in investing activities
Financing Activities
Cash provided by (used) in financing activities
Change in cash
Opening cash
Ending cash