Prepare a statement of cash flows in a proper format

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Reference no: EM132968961

Question: Comparative statements of financial position As of December 31,20202019

Cash $73,000 $24,000

AR, net $35,000 $38,000

Inventory $114,000 $82,000

Land $120,000 $190,000

Accumulated depreciations ($50,000) ($40,000)

Equipment $1,030,000 $600,000

Accumulated depreciations ($118,000) ($94,000)

$1,424,000 $1,000,000

AP $115,000 $100,000

4% bonds payable $320,000 $0

Common shares $750,000 $750,000

Retained earnings $239,000 $150,000

$1,424,000 $1,000,000

Additional data:

1. Net income for the year was $92,400.

2. Cash dividends were paid.

3. Land was sold for $88,000.

4. Old equipment was sold for $77,000. This equipment had cost $165,000 and had accumulated depreciation of $66,000 to date of sale. New equipment was purchased to replace it.

Instructions

Using the indirect method, prepare a statement of cash flows in a proper format with proper title and applicable note disclosures, for calendar 2020, using the indirect method.

Reference no: EM132968961

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