View Policies Current Attempt in Progress Alex Company reported the following information for 2020. Alex Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals 2020 $61,000 56,000 42,000 6,000 52,000 186,000 (22,500) 186,000 (25,000) $541,500 2019 $34,000 22,000 -0- 4,000 67,000 186,000 (15,000) 64,000 (10,600) $351,400 Change Increase/Decrease $27.000 Increase 34,000 Increase 42,000 Increase 2,000 Increase 15,000 Decrease -0- 7,500 Increase 122,000 Increase 14,400 Increase Question 2 of 2 Increase Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals $43,000 -0- 102,000 212,000 184,500 $541,500 $39,000 11,000 149,000 65,000 87,400 $351,400 $4,000 11,000 47,000 147,000 97,100 Decrease Decrease Increase Increase Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $902,000 Cost of goods sold $433,000 Operating expenses 226,000 Interest expense 13,000 Loss on disposal of plant assets 1.000 673,000 Income before income taxes 229,000 Income tax expense 65,000 Net income $164.000 Question 2 of 2 - / 70 Additional information: 1. 2. 3. 4. Operating expenses include depreciation expense of $36,900. Land was sold at its book value for cash. Cash dividends of $66,900 were declared and paid in 2020. Equipment with a cost of $169,000 was purchased for cash. Equipment with a cost of $47,000 and a book value of $32,000 was sold for $31,000 cash. Bonds of $47,000 were redeemed at their face value for cash. Common stock ($1 par) of $147,000 was issued for cash. 5. 6. Use this information to Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg.-15,000 or in parenthesis eg. (15,000).) ALEX COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to