Question

The following are the financial statements of Cullumber Company. Cullumber Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $36,000 $19,000 Accounts receivable 32,000 18,000 Inventory 29,000 20,000 Equipment 59,000 77,000 Accumulated depreciation-equipment (29,000) $127,000 (23,000) $111,000 Total Liabilities and Stockholders' Equity Accounts payable $28,000 $16,000 Income taxes payable 7,000 8,000 Bonds payable 26,000 17,000 32,000 13,000 Common stock Retained earnings 49,000 42.000 Total $127,000 $111,000 Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cost of goods sold 175.000 Gross profit 66.000

Just lost on this. Appreciate the help.

Answer 1

Answer:

Cullumber Company
Statement of Cash Flows
For the Year Ended December 31,2020
Cash Flows from Operating activities:
Net income		$34,000
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation expense	$14,400
Increase in accounts receivable	($14,000)
Increase in inventory	($9,000)
Increase in accounts payable	$12,000
Decrease in income taxes payable	($1,000)	$2,400
Net cash provided (used) by operating activities (i)		$36,400
Cash flows from investing activities:
Sale of equipment (ii)		$9,600
Cash flows from financing activities:
Cash paid for dividends	($27,000)
Redemption of bonds payable	($6,000)
Issuance of common stock	$4,000
Net cash provided (used) by financing activities (iii)		($29,000)
Net increase(decrease) in cash (i+ii+iii)		$17,000
Cash balance, Dec 31,2019		$19,000
Cash balance, Dec 31,2020		$36,000