Reference no: EM133081416
Question - The following is a comparative balance sheet of Cowboy Company for 2020 and 2021.
|
|
2021
|
2020
|
|
Cash
|
$250,000
|
$220,000
|
|
Accounts Receivable
|
327,600
|
356,000
|
|
Inventory
|
822,000
|
780,000
|
|
Available-for-Sales Security
|
0
|
200,000
|
|
Equipment
|
2,400,000
|
2,040,000
|
|
Accumulated Depreciation
|
(700,000)
|
(760,000)
|
|
|
3,099,600
|
2,836,000
|
|
Accounts Payable
|
359,000
|
281,000
|
|
Bonds Payable, due 2025
|
0
|
400,000
|
|
Common Stock, $20 par
|
1,800,000
|
1,600,000
|
|
Additional Paid-in Capital
|
280,000
|
200,000
|
|
Retained Earnings
|
660,600
|
355,000
|
|
|
3,099,600
|
2,836,000
|
Additional information:
1) Net income: $545,600 for 2021 and $555,000 for 2020.
2) Depreciation reported on the 2021 income statement: $140,000.
3) Fully depreciated equipment ($200,000), no residual value, was scrapped for nothing (thrown away). Equipment was purchased for $560,000.
4) Bonds of $400,000 were retired at their face value.
5) 10,000 shares of common stock were issued for cash at $28 per share.
6) Cash dividend declared and paid, $240,000
7) Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Required - Prepare a statement of cash flows (operating, investing and financing activities) for Cowboy for 2021, using the indirect method.