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Utomi Company Balance Sheet December 31, 2019 2018 Assets Cash $ 53,000 $ 50,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments 70,000 Equipment
Utomi Company Balance Sheet December 31, 2019 2018 Assets Cash $ 53,000 $ 50,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments 70,000 Equipment 573,200 450,000 Accumulated depreciation-equipment (142,000 (176,000) $629,700 $542,000 Liabilities and Equity Accounts payable $ 62,500 $ 43,800 Bonds payable 100,000 Common stock 405,000 340,000 Retained earnings 162,200 58,200 $629,700 $542,000 Utomi Company Income Statement For the year ended December 31, 2019 $625,700 Cost of merchandise sold 340,000 Gross profit $285,700 Operating expenses: Depreciation expense $26,000 Other operating expenses 68,000 94,000 Income from operations $191,700 Other income: Gain on sale of investment $ 4,000 Other expense: Interest expense 6,000 _(2.000) Income before income tax $189,700 Income tax 60,700 Net income $129,000 Additional data on year 2019 transactions are as follows: 1. Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200. 2. Bonds payable for $100,000 were retired by payment at their face amount. Sales Required Prepare a complete statement of cash flows; report its operating activities using the indirect method
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