Question

I need to prepare a statement of cash flows using the indirect method using this information

Assets:	Dec. 31st, 2020	Dec. 1st, 2019
Cash	680,000	360,000
Investments	110,000	290,000
Accounts receivable	115,000	130,000
Inventory	230,000	195,000
Prepaid advertising	40,000	25,000
Property & Equipment, net	435,000	500,000
Patents, net	180,000	50,000
Total Assets	1,790,000	1,550,000
Liabilities & Stockholders’ Equity
Accounts Payable	265,000	284,000
Wages Payable	30,000	21,000
Notes Payable	650,000	350,000
Common Stock & APIC	600,000	600,000
Treasury Stock	(250,000)	(50,000)
Retained Earnings	495,000	345,000
Total Liabilities and stockholders’ equity	1,790,000	1,550,000
Income Statement
Sales	3,280,000
Cost of Goods Sold	1,820,000
Depreciation Expense	140,000
Amortization Expense	20,000
Advertising Expense	165,000
Wages Expense	440,000
Other Operating Expense	370,000
Operating Income	325,000
Interest Expense	25,000
Loss of Sale of PP&E	5,000
Gain on sale of investments	20,000
Income before tax expense	315,000
Income tax expense	105,000
Net Income	210,000

Additional Information:

The company sold investments that had an initial cost of $180,000 for $200,000 cash.

The company purchased new PP&E for $95,000 cash.

The company purchased a patent for $150,000 cash.

The company sold some of its PP&E for $15,000 cash. The PP&E that was sold had an initial cost of $260,000 and Accumulated Depreciation of $240,000.

The company borrowed $300,000 from a bank.

The company declared and paid $60,000 in

dividends.

The company spent $200,000 repurchasing its stock

Kirkland Corporation Statement of Cash Flows (Indirect Method) For the year ended December 31, 2020 (In $)

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income

Adjustments to reconcile net income with cash from operations:

Net cash provided by/(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES

Net cash provided by/(used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net cash provided by/(used in) financing activities

Net change in cash

Cash at beginning of the year

Cash at end of the year

Answer 1

Please comment for any queries... Thank you!!!

CASH FLOW STATEMENT OF KIRKLAND CORPORATION. S.No Particulars Amount [S] Amount [S] Cash From Operations: $ 210,000.00 $ Net Income Earned During the Period Adjustments to reconcile net income with cash from operations Add: Non Cash/ Non Operating Expenses Depreciation Expense Amortization Expense Interest Expense Loss on sale of PPE Less: Non Operating Incomes Gain on sale of Investments $ 140,000.00 20,000.00 25,000.00 5,000.00 (20,000.00) 380,000.00 $ Working Capital Changes: Add: Decrease in Accounts Receivables (130,000-115,000) Less: Increase in Inventories (230,000-195,000) Less: Increase in Prepaid Advertising (40,000-25,000) Derence in Accounts Pavable (284 000-265.000). 15,000.00 (35,000.00) (15,000.00) (19.000.000

Working Capital Changes: Add: Decrease in Accounts Receivables (130,000-115,000) Less: Increase in Inventories (230,000-195,000) Less: Increase in Prepaid Advertising (40.000-25.000) Less: Decrease in Accounts Payable (284,000-265,000) Add: Wages Payable (30,000-21,000) 15,000.00 (35,000.00) (15,000.00) (19,000.00) 9,000.00 Net Cash From Operations $ 335,000.00 Cash From Investing Activities: Sale on Investments Sale of PPE Purchase of Land Purchase of Patent Net Cash From Investing Activities $ $ $ $ 200,000.00 15,000.00 (95,000.00) (150,000.00) $ (30,000.00) Cash From Financing Activities: Interest Expense $ (25,000.00) Common Stock (200 000 00

III. Cash From Financing Activities: Interest Expense Repurchase of Common Stock Dividend Paid Loan Borrowed Net Cash From Financing Activities $ $ $ $ (25,000.00) (200,000.00) (60,000.00) 300,000.00 $ 15,000.00 Net Cash Flow Add: Cash balance at Beginning Cash Balance at Ending $ 320,000.00 $360,000.00 $ 680,000.00