Presented below are data taken from the records of Sheffield Company. December 31, 2020 December 31, 2019 Cash $15,100 $7,900 Current assets other than cash 85,800 59,800 Long-term investments 10,100 53,000 Plant assets 335,200 214,500 $446,200 $335,200 Accumulated depreciation $20,200 $40,200 Current liabilities 39,600 22,000 Bonds payable 75,800 –0– Common stock 252,800 252,800 Retained earnings 57,800 20,200 $446,200 $335,200 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $7,900. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $56,500. 4. Dividends paid amounted to $7,580. 5. Depreciation charged for the year was $19,680. Prepare a statement of cash flows for the year 2020 using the indirect method. (Show amounts that decrease cash flow with

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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Presented below are data taken from the records of Sheffield Company.

	December 31, 2020	December 31, 2019
Cash	$15,100	$7,900
Current assets other than cash	85,800	59,800
Long-term investments	10,100	53,000
Plant assets	335,200	214,500
	$446,200	$335,200

Accumulated depreciation	$20,200	$40,200
Current liabilities	39,600	22,000
Bonds payable	75,800	–0–
Common stock	252,800	252,800
Retained earnings	57,800	20,200
	$446,200	$335,200

Additional information:

1.		Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings.
2.		Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $7,900. The loss was incorrectly charged directly to Retained Earnings.
3.		Net income as reported on the income statement for the year was $56,500.
4.		Dividends paid amounted to $7,580.
5.		Depreciation charged for the year was $19,680.

Prepare a statement of cash flows for the year 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).)

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