Brown Company, had the following statements prepared as of December 31, 2020.
Brown CompanyComparative Balance SheetAs of December 31, 2020 and 2019
12/31/20
12/31/19
Cash
$160,800
$38,400
Accounts receivable
123,200
49,000
Inventory
112,500
57,900
investments (available-for-sale)
90,000
101,000
factory assets
240,000
212,500
Total assets
$726,500
$458,800
Accounts payable
$100,000
$65,200
mortgage debt
50,000
77,000
accumulated depreciation
30,000
52,000
Common stock
175,000
131,100
Retained earnings
371,500
133,500
Total liabilities and stockholders' equity
Brown CompanyIncome StatementFor the Year Ending December 31, 2020
Sales revenue
$440,000
Interest and other income
(Including gain on sale of investment $5,000)
20,000
460,000
Less:
Cost of goods sold
130,000
Selling and administrative expenses
10,000
Depreciation
42,000
income tax
5,000
Interest expense
$3,000
Less on sale of factory assets
12,000
202,000
Net profit
258,000
Cash dividend
retained earnings in business
238,000
Additional information:
New factory assets valued at $85,000 in principal were purchased during the year. $20,000 worth of common stock was issued in exchange for the Factory assets. Investments have been sold in the current year. No unrealized gains or losses have arisen from these securities.
Instructions
Prepare a statement of cash flows using the indirect method.
Note:
Please be more careful. This question is almost the same as the one that was uploaded. But some places have changed. Please do not directly copy the answer from before. Please take a closer look at the question. (Look at teh inventory, investment, and account payable) that is different number.
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