Here are comparative balance sheets for Skysong Company. Prepare a statement of cash flows-indirect method.SKYSONG COMPANYComparative Balance SheetsDecember 31Assets20202019Cash$72,000$22,000Accounts receivable86,00077,000Inventory171,000192,000Land72,000101,000Equipment263,000199,000Accumulated depreciation - equipment(65,000)(32,000)Total$599,000$559,000Liabilities and Stockholders' EquityAccounts payable$37,000$48,000Bonds payable149,000209,000Common stock ($1 par)214,000171,000Retained earnings199,000131,000Total$599,000$559,000Additional information:1.Net income for 2020 was $98,000.2.Cash dividends of $30,000 were declared and paid.3.Bonds payable amounting to $60,000 were redeemed for cash $60,000.4.Common stock was issued for $43,000 cash.5.Equipment that cost $49,000 and had a book value of $28,000 was sold for $33,000 during 2020; land was sold at cost.Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)Adjustments to reconcile net income toSKYSONG COMPANYStatement of Cash Flows$$$Compute free cash flow for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).)Free cash flow$

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Here are comparative balance sheets for Skysong Company. Prepare a statement of cash flows-indirect method. SKYSONG COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,000 $22,000 Accounts receivable 86,000 77,000 Inventory 171,000 192,000 Land 72,000 101,000 Equipment 263,000 199,000 Accumulated depreciation - equipment (65,000) (32,000)

Here are comparative balance sheets for Skysong Company. Prepare a statement of cash flows-indirect method. SKYSONG COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,000 $22,000 Accounts receivable 86,000 77,000 Inventory 171,000 192,000 Land 72,000 101,000 Equipment 263,000 199,000 Accumulated depreciation - equipment (65,000) (32,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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