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Acct 2208 corp

Accounting

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Acct 2208 corp. prepared the following comparable Balance sheet for years ending 2020 and 2019:  

                                     ACCT 2208 Corp.

Balance Sheet at Dec 31, 2020                                                                    

Assets

2020

2019

Cash

($12,775)

$23,750

Accounts Receivables

65,250

58,500

Inventories

38,000

32,000

Long term investments (FV-NI)

21,250

38,500

Equipment

22,500

11,250

Accumulated Depreciation- equipment

-5,500

-1,500

Building

52,500

41,250

Accumulated Depreciation- building

-6,875

-3,250

Land

34,000

32,500

Total Assets

$208,350

$233,000

Liabilities & Shareholder's Equities

 

 

Accounts Payable

24,750

30,000

Accrued Payables

2,375

1,125

Income tax payable

1,500

1,000

Long term note payable

6,000

15,000

Common Shares, issued & outstanding

165,000

140,000

Retained Earnings

8,725

45,875

Total liabilities & Shareholder's Equities

$208,350

$233,000

ACCT 2208 Corp.

Statement of income for the period ended Dec 31, 2020

Sales Revenue

$ 590,250

Cost of Goods sold

(380,000)

Gross Profit

210,250

Operating expense (includes depreciation)

(179,400)

Income from operating

30,850

Other income and other losses

200

Income Tax expense

(40,000)

Net loss

($8,950)

                                                                 

Additional Information:

1-     During 2020, ACCT 2208 declare and paid cash dividend

2-     During 2020, equipment had cost of $3,750 and accumulated amortization of $750 were sold during the year for $ 2,200 cash

3-     During 2020, Investments at FV-NI that cost $27,750 and had a fair value at Dec 31, 2019, of $24,750 were sold during the year for $25,750

 

Instructions:

Prepare the Statement of cash flows for the year ended Dec 31, 2020 using indirect method.