uestion Completion Status: A Click Submit to complete this assessment estion 27 Candice Smith has completed the basic format to be used in preparing the statement of cash flows (indirect method) for Solomon Corporat Listed below, in random order, are elements to be included in the statement of cash flows. Purchase of equipment $270,000 Increase in inventory $30,000 Increase in prepaid rent $15,000 Payment of dividends $30,000 Depreciation expense $18,000 Increase in accounts receivable $50,000 Increase in accounts payable $10,000 Loss on sale of land $7.000 Net income $80,000 Repayment of notes payable $50,000 Cash received from the sale of land $30,000 Issuance of common stock $250,000 Cash balance at 1/1/2019 $95,000 Cash balance at 12/31/2019 $45,000 Prepare the Statement of Cash Flows for Solomon Corporation using the indirect method Solomon Corporation Statement of Cash Flows For the year ended December 31, 2019 $ [a] [b] IC) Cash Flows from Operating Activities Net Income Adjustments for non-cash effects: Depreciation expense Loss on sale of land Changes in current assets and liabilities: Increase in accounts receivable Increase in inventory ---ance in prepaid rent (d) [e] 10 No entry required La stion Completion Status: TECEVEU HOME Sac or manu JU.UUU Isance or commIT SULK JEDU, VOU ash balance at 1/1/2019 $95,000 Cash balance at 12/31/2019 $45,000 repare the Statement of Cash Flows for Solomon Corporation using the indirect method. Solomon Corporation Statement of Cash Flows For the year ended December 31, 2019 $ [a] [b] [c] ash Flows from Operating Activities Net income Adjustments for non-cash effects: Depreciation expense Loss on sale of land Changes in current assets and liabilities: Increase in accounts receivable Increase in inventory Increase in prepaid rent Increase in accounts payable Net cash flows from operating activities [d] [e] [ [el No entry required ash Flows from Investing Activities Cash received from the sale of land Purchase of equipment Net cash flows from investing activities th] No entry required SZE ash Flows from Financing Activities Issuance of common stock Payment of dividends Repayment of notes payable Net cash flows from financing activities Het [m] in cash Cash at the beginning of the year Cash at the end of the year No entry required [o] $45.000 ning Time: 1 hour, 13 minutes, 34 seconds. on Completion Status: 1. - 30.000 2.-80.000 3. - 18.000 4. - 18.000 (a) Net income [b] Depreciation expense (c) Loss on sale of land (d) Increase in accounts receivable 5.-7.000 6. - 7.000 7 - 50.000 8. - 50.000 (e) Increase in inventory Increase in prepaid rent 9.-30.000 (g) Increase in accounts payable 10.- 30,000 [h] Cash received from the sale of land 11. 15.000 12.-15.000 Purchase of equipment - issuance of common stock 13.+ 10.000 14. - 10.000 [k Payment of dividends 15. + 270.000 16.-270.000 17. - 250.000 [ Repayment of notes payable [m] Net In cash (select increase or decrease) + [n] Net change in cash (Select amount) loj Cash at the beginning of the year 18.-250,000 19. +95.000 20. - 95,000 21. Increase 22. decrease
