Reference no: EM132691836

Cash Flow Statement Assignment -

The following are accounting items taken from the records of the Biden Company for 2020:

Cash payment to stockholders as dividends $40,000

Decrease in accounts payable $48,000

Decrease in accounts receivable $62,000

Increase in inventories $19,200

Increase in salaries payable $40,000

Net income for 2020 $136,000

Cash payment for purchasing land and building $128,000

Cash payment for reducing long-term notes payable $46,400 (principal payment: $44,000; interest expense and payment: $2,400)

Cash received from issuance of ten-year bonds payable at par value $160,000

Depreciation expense $24,000

Amortization expense 7,000

Cash received from sale of patent rights $64,000

Gain on the sale of patent rights $12,000

Purchase equipment by issuing long-term notes $70,000

Cash (at the beginning of 2020) $560,000

Required - Prepare the Statement of Cash Flows for Biden Company for 2020 using the indirect method. You are required to use Excel (including Excel functions) to complete the assignment.