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Problem - Stand Corporation's calendar year-end 2020 and 2019 balance sheets showed the following items:
2020
2019
Cash
$29,200
$21,000
Accounts payable
38,000
49,000
Merchandise inventory
107,800
97,000
Equipment
112,000
89,000
Accumulated depreciation, equipment
25,000
16,000
Common shares
135,000
Retained earnings
119,000
Additional information:
a) The only decrease in accounts receivable were customer receipts.
b) No equipment was sold in the year.
c) Dividends were declared and paid in the year.
d) Profit was $60,000 for 2020.
Required - Prepare a statement of cash flows for calendar 2020 that follows the indirect method of calculating the net cash provided (or used) by operating activities.
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