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Use the Zcom Inc. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2019,
Use the Zcom Inc. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method. Additional Information:
- Purchased machinery for $43,000 cash.
- Sold the long-term investment on January 1, 2019 for $12,000.
- Sold machinery for $14,500 cash that had originally cost $60,500 and had $36,500 of accumulated depreciation.
- Issued $50,000 of bonds payable at face value.
Zcom Inc. Comparative Balance Sheet Information Liabilities and Stockholders' Equity Accounts payable Cash dividends payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity \begin{tabular}{|rr|} \hline \multicolumn{2}{|c|}{ December 31} \\ 2019 & 2018 \\ 476,100 & 225,000 \\ 27,900 & 64,000 \\ 55,200 & 165,000 \\ 0 & 34,000 \\ 182,500 & 200,000 \\ 633,200(108,500) & 578,000(110,000) \\ \hline \hline \end{tabular} \begin{tabular}{rr} 102,700 & 72,000 \\ 7,000 & 40,000 \\ 50,000 & 0 \\ 346,000 & 346,000 \\ 127,500 & 120,000 \\ \hline 633,200 & 578,000 \\ \hline \end{tabular} Zcom Inc. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities Net loss Adjust. to reconcile net income to net cash flow from oper. act: x+1 x= Cash flows from investing activities Cash flows from financing activities x \pm Total cash flow increase/(decrease) Cash at beginning of year Cash at end of year Zcom Inc. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Depreciation expense Other expenses Loss on sale of long-term investment Loss on sale of machinery. Net income 640,000 530,000 35,000 36,000(601,000) (22,000) (9,500)7,500
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