Reference no: EM132554028
The statements of financial position for Opplo Corp. at the end of 2020 and 2019 are as follows:
2020 2019
Cash.................................................................................................... $ 75,000 $ 105,000
Accounts receivable (net)..................................................................... 180,000 135,000
Merchandise inventory......................................................................... 210,000 135,000
Prepaid expenses................................................................................. 20,000 75,000
Land.................................................................................................... 270,000 120,000
Buildings and equipment...................................................................... 270,000 225,000
Accumulated depreciation-buildings and equipment.......................... (54,000) (20,000)
Total Assets.......................................................................................... $ 971,000 $ 775,000
Accounts payable................................................................................. $ 204,000 $ 165,000
Salaries payable................................................................................... 36,000 54,000
Notes payable-long-term................................................................... 0 124,000
Mortgage payable................................................................................ 90,000 0
Common shares................................................................................... 617,000 477,000
Retained earnings (deficit)................................................................... 24,000 (45,000)
Total Liabilities & Shareholders' Equity $ 971,000 $ 775,000
- Equipment costing $ 15,000 was sold for $ 16,000 cash. The book value of the equipment at the time of sale was $ 12,000, and the gain(loss) was included in net income. Cash dividends of $ 30,000 were declared and paid during the year. Yeti adheres to ASPE and uses the indirect method when preparing the statement of cash flows.
Question 1: Prepare the operating activity section of the statement of cash flows. (Note: you will need to calculate net income through T account analysis.)