O A https://prod.reader-ui.prod.mheducation.com/epub/sn_710f1/data-uuid-be8dbaUcb8ea w -> Aa く > 三 P20-2 Cash flow statement under indirect method (L LO 20-1, L LO 20-2, LO 20-3, E LO 20-4) The Barden Corporation's comparative balance sheets for 20X1 and 20X0 are presented below. Barden Corporation Table Summary: Row 1 is a header and spans columns 2 and 3. Rows 3, 12, and 17 are subheaders and contain data only in column 1. Balance Sheets December 31, Increase (Decrease) Assets Cash $ 337,000 $246,000 Accounts receivable, net 420,000 280,000 140,000 Marketable securities 0000 -0- Inventories Land 650,000 250,000 Plant and equipment 1,160,000 1,266,000 (106,000) Less: Accumulated depreciation (200,000) Total assets $2,922,000 $2,432,000 $ 490,000 Liabilities and Stockholders' Equity Liabilities: Accounts payable 000 099 $ $ 500,000 $160,000 Accrued wages 520,000 Long-term bonds (due 7/1/20X8) 260,000 360,000 Total liabilities 1,460,000 1,380,000 80,000 Stockholders' equity: Common stock and Additional paid-in capital 760,000 Retained earnings 292,000 204,000 Total stockholders' equity 1,462,000 1,052,000 410,000 Total liabilities and stockholders' equity $2,922,000 $2,432,000 $ 490,000 3:55 PM 2 11/19/2021 Barden Corporation Table Summary: Row 1 is a header and spans columns 2 and 3. Rows 3, 12, and 17 are subheaders and contain data only in column 1. Income Statement for the Year Ended December 31, 20X1 Sales Gain on sale of marketable securities 2,000 Gain on extinguishment of debt Total revenue and gains 1,646,000 Expenses: Cost of goods sold 720,000 Personnel costs 386,000 Depreciation Loss on sale of equipment Interest Miscellaneous Total expenses 1,202,000 Income before income taxes 444,000 Income tax expense Net income $ 244,000 Additional Information: a. On January 11, 20X1, Barden purchased land for $170,000 cash. Page 20-36 b. On January 23, 20X1, Barden extinguished long-term bonds with a face value of $100,000. c. On February 8, 20X1, Barden issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. d. Barden purchased marketable securities for $30,000 on March 15, 20X1; one-half of the securities were later sold on December 3, 20X1. e. On June 9, 20X1, Barden issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction. f. On July 1, 20X1, Barden declared and paid a $40,000 cash dividend. g. On October 18, 20X1, Barden sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash. Required: Prepare a cash flow statement using the indirect method for operating activities. 3:56 PM 11/19/2021