Question

please help prepare a statement of cash flows using the indirect method. thank you!

Merge & Center Paste 1 BIU Number Clpboard Font Alignment F144 A D 40 E Issued Common Stock for Cash 41 F Purchased Treasury Stock with Cash 42 43 Requirements 44 Prepare, in good form, a Statement of Cash Flows using the indirect method 45 46 Formatting 47 Do NOT use cents (00) in any records Journal entries, adjusting and closing entries do not contain dollar signs or cents 48 Amounts do contain commas 49 Financial Statements do not contain cents but amounts do contain commas 50 51 52 The "rules for dollar signs are First amount in a new column includes a dolar sign use a double underline and a dollar sign for totals on all financial statements 53 Refer to the text for proper headings and fomat of financial statements 55Online Submission Instructions Sheet 1 Gateway Alignment Clipboard Font fIncome Statement ES B A D 5 Comparative Balance Sheet December 31, 2020 and 2019 6 7 2020 Net sa 2019 CO ASSETS Cost o Current assets Gross 10 Cash 66.500 S 62,000 Operati 11 Accounts receivable 95,000 113,000 Salaries 12 Merchandise inventory 172.000 165,000 Depreciat 13 Total current assets 333,500 340 000 Other ope 14 Long-term investments Income fro 15 Investment in Walking Dead Co 50,000 Other rever 16 Property, buildings, and equipment 507.000 304.000 Interest re 17 Less Accumulated depreciation (59 600) (42,000) 781,000 $ 652,000 Dividend re 18 Total assets Gain on disg 19 Liabilities and Stockholders' Equity Other opens 20 Cent e Sheet aady NGate Merge &Center ES A Paste IU Alignment Clipboard Font F32 D A Oth 19 Liabilities and Stockholders' Equity 20 Current liabilities Int 144,000 $ 185,000 Incor 21 Accounts payable 22 37,000 Accrued liabilities 17,000 Incon INet In 23 Total current liabilities 222.000 161,000 24 Long-term liabilities 25 Notes payable, long-term 160,000 90,000 26 Total liabilities 321.000 312 000 27 Stockholders' equity 28 Common stock 370.000 250.000 29 Retained eanings 130 000 90,000 30 Treasury stock (40.000) 31 Total Stockholders Equity 460 000 340 000 32 Total Liabilities & Stockholders Equty 781.000 S652,000 33 A Adeininnal lefnematinn Sheet NGat Formatting Table Styles Styles Number D H Angela's Cleaning Consortium Income Statement For the Year Ended December 31, 2020 Net sales 386,000 Cost of goods sold (212 000) Gross profit 174,000 000 Operating expenses 000 Salaries and wages expense (66,000) Depreciation expense ,000 (29,500) 0,000 Other operating expenses (23.500) Income from operations 55,000 50.000 Other revenues and gains 804 000 Interest revenue 19 500 (42 000 Dividend revenue 9.700 652.000 Gain on disposal of plant ass 7 500 Other exnenses and lossec Gateway D E G Gross profit 174,000 00 Operating expenses Salaries and wages expense Depreciation expense 00 (66,000) (29,500) 000 Other operating expenses 000 (23,500) Income from operations 55,000 0,000 Other revenues and gains 04,000 Interest revenue 19.500 42,000 Dividend revenue 9,700 652,000 Gain on disposal of plant ass 7.500 Other expenses and losses Interest expense (15.000) 185,000 Income before income taxes 76.700 37000 Income tax expense (14.000) 222 000 Net Income 62.700 Gateway 8 8 340,000 460,000 Total Stockholders' Equity 31 $781,000 $652,000 32 Total Liabilities&Stockholders' Equity 33 34 Additional Information: 35 A Sold plant assets with a cost of $75,000 and accumulated depreciation of $12,000 36 yielding a gain of disposal of plant assets of $7,500 37 B Purchased plant assets by paying cash 38 C. Issued Notes Payable for Cash 39 D Sold investment in Walking Dead Co at cost (zero gain/loss) 40 E Issued Common Stock for Cash 41 F Purchased Treasury Stock with Cash 42 43 Requirements: 44 Prepare in good form a Statement of Cash Flows using the indirect method 45 46 Formatting: Sheet1 Read YGate e2

Answer 1

A D H Statement of Cashflows 1 for the year ended Dec 31 X2 2 3 Cash flow from Operating Activities 4 62,700.00 5 Net Income 6 Add:Income Taxes 14,000.00 7 Less: Dividend Revenue -9,700.00 -19,500.00 8 Less: Interest Revenue 9 Less: Gain on sale of Plant Retained Earnoings S 7,500.00 10 Add:Depreciation Expense S 29,500.00 22,700.00 Beginning balance $1,30,000.00 Net Income during the year 11 Add: Interest paid Dividend Paid 15.000.00 90,000.00 12 Decrease in Accrued Liability 13 Decrease in Accounts Receivables Closing Balance S -20,000.00 62,700.00 1,52,700.00 18,000.00 1,52,700.00 14 Decrease in Accounts Payable S -41.000.00 15 Increase in Merchandise Inventory 16 Less: Income tax Paid -7,000.00 -14,000.00 $ Plant Assets -42,200.00 S 17 Net Cash flow from Operating Activities 20,500.00 Beginning Balance Gain on sale S 3,04,000.00 Cash 18 Cashflow from Investing Activities 70,500.00 19 Proceeds from sale of PPE S 7,500.00 Accumulated Depreciation 70,500.00 12,000.00 2,78,000.00 Closing Blance Cash $5,07,000.00 20 Purchase of Plants 2,78,000.00 21 Sale of Long term Investment 22 Dividend revenue 23 Interest Revenue 0,000.00 9,700.00 $ 5,89,500.00 19,500.00 5,89,500.00 $ 1,28,300.00 24 Net Cash Used in Investing Activities

B A C D G H. Cashflows from financing Activities Accumulated Depreciation account Dividend Paid Interest Paid Purchase of Long term Notes Payable Issuance of Common Stock Purchsed Treasury Stock -22,700.00 12,000.00 Beginning Balance Plant(reversal on sale) -15,000.00 42,000.00 Closing Blance 59,500.00 Depreciation 70,000.00 29,500.00 71.500.00 71.500.00 1,20,000.00 -40,000.00 Net Cashflows from in financing Activities S 1,12,300.00 Net Change in Cash Beginning Cash incl cash and cash equivalent Ending Cash incl cash and cash equivalent 4,500.00 62.000.00 66.500.00

Note: Cash proceeds from Sale of Plant = 75000(cost)-12000(Acc depre)+7500(Gain on sale) = $70,500