Question

The following comparative balance sheets and other data are for Sellular Telephone Sales, Inc.: 

	2020	2019
Assets:
Cash	$279,900	$150,000
Accounts receivable, net	$36,000	$40,000
Merchandise inventory	$54,000	$60,000
Supplies on hand	$1,600	$2,600
Prepaid expenses	$2,900	$2,800
Land	$410,000	$340,000
Equipment	$380,000	$440,000
Accumulated depreciation--equipment	$(270,000)	$(250,000)
Total assets	$894,400	$785,400
Liabilities and Stockholders' Equity:
Accounts payable	$72,000	$80,000
Salaries payable	$4,600	$6,000
Accrued liabilities payable	$2,400	$2,000
Long-term notes payable	$200,000	$200,000
Common stock ($5 par)	$362,500	$300,000
Paid-in capital in excess of par	$37,500	-0-
Retained earnings	$215,400	$197,400
Total liabilities & stockholders' equity	$894,400	$785,400

Additional Information:

1.	During 2020, land was bought for $70,000 cash.
2.	Equipment costing $90,000 with accumulated depreciation of $40,000 was sold for $47,000 cash during 2020.
3.	Equipment costing $30,000 was purchased for cash during 2020.
4.	Depreciation expense for 2020 was $60,000.
5.	During 2020, 12,500 shares of common stock was issued for $100,000 cash.
6.	Dividends declared and paid during 2020 totaled $52,000.
7.	Net income for 2020 was $70,000.

 

Required: Prepare a statement of cash flows for the year ended December 31, 2020 under the indirect method.