Use the information from above. Prepare a Statement of Cash Flows, in good form, using the Direct Method with the accompanying reconciliation of net income to cash flows from operating activities. As with other class preparedness checks, I only expect an attempt.

How-to: Analyze changes in the B/S accounts to accomplish it. Reconstruction of journal entries will help you do this. Here are some hints:

• Cash inflow from operating activities equals $2,900.
• Cash outflow from investing activities equals .
• Cash inflow from financing activities equals $5,100.
• Retained Earnings beginning balance (1/1/20) equals $76,200.
• Retained Earnings ending balance (12/31/20) equals $30,300.
• Dividends paid in 2020 equals $31,500.
• Selling expense needs to be adjusted for Depreciation Expense.
• General & Administrative expense needs to be adjusted for Depreciation Expense and Bad Debt Expense.

Adjusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow. Debits, December 31 2020 2019 Credits, December 31 2020 2019 Cash... Accounts receivable Inventory.. Property, plant, and equipment. . Discount on bonds payable Cost of goods sold Selling expenses General and administrative expenses... Interest expense. Income tax expense. Total debits. $ 35,000 $ 32,000 33,000 30,000 31,000 47,000 100,000 95,000 4,500 5,000 250,000 380,000 141,500 172,000 Allowance for doubtful accounts. . . $ 1,300 $ 1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable. 25,000 17,500 Income taxes payable. 21,000 27,100 Deferred income tax liability. 5,300 4,600 Callable bonds payable, 8% 45,000 20,000 Common stock ... 50,000 40,000 Additional paid-in capital. 9,100 7,500 Retained earnings 44,700 64,600 Sales... 538,800 778,700 137,000 151,300 4,300 2,600 20,400 61,200 $756,700 $976,100 Total credits $756,700 $976,100