Question

Condensed financial data of Teal Company for 2020 and 2019 are presented below. TEAL COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,180 Receivables 1.710 1,320 Inventory 1,590 1,920 Plant assets 1,890 1.710 Accumulated depreciation (1.220) (1.190) Long-term investments (held-to-maturity] 1,320 1.440 $7.120 $6,380 $1,190 $890 210 260 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings 1,400 1,580 1.940 1,660 2.380 1.990 $7.120 $6,380 TEAL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6.720 4,680 2.040 920 Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments 1,120 80 Income before tax 1.200 Income tax expense 550 Net income 650 Cash dividends 260 Income retained in business $390 Additional information: During the year, 570 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Answer 1

Teal Company
Statement of Cash Flows
For the year ended December 31, 2020
Cash flow from operating activities
Net Income		650
Adjustments to reconcile net income to net cash provided by operating activities activities
Depreciation and amortization (1220-1190)	30
Increase in accounts receivable (1710-1320)	-390
Decrease in inventory   (1590-1920)	330
Decrease in accounts payable (1190-890)	300
Decrease in accrued expenses payable (260-210)	-50	220
Net cash provided by operating activities		870
Cash flow from investing activities
Cash paid for plant assets and intangibles (1710+70-1890)	-110
Sale of investment (1440-1320)	120
Net Cash used in Investing activities		10
Cash flow from financing activities
Cash paid for dividends	-260
Redemption of bond (1580-1400)	-180
Cash from issuance of stock (1960-1660-70)	210
Net Cash used in financing activities		-230
Net decrease in cash		650
Cash and cash equivalents, December 31, 2019		1180
Cash and cash equivalents, December 31, 2020 .		1830
Non Cash Activities : common stock isssued in exchange of plant assets