service revenue (all cash) $175 operrating expenses saleries (all cash) $85 Net income $90 2020 2019 current assets cash $1,250 $1,600 short- term investment 100 200 $1,350 $1,800 Liabilities Borrowings 600 1,000 Stockholder's Equity Common Stock 200 300 Retained Earnings 550 500 750 800 $1,350 $1,800 Other information: short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non current. No gain or loss occurred when stock was repurchased. Prepare the 2020 statement of changes in equity. Calculate cash flow from financial activities. Prepare a cash flow table. Show that cash effects net to a $450 outflow.
service revenue (all cash) $175
operrating expenses
saleries (all cash) $85
Net income $90
2020 2019
current assets
cash $1,250 $1,600
short- term investment 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Common Stock 200 300
750 800
$1,350 $1,800
Other information: short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non current. No gain or loss occurred when stock was repurchased.
Prepare the 2020 statement of changes in equity.
Calculate
Prepare a cash flow table. Show that cash effects net to a $450 outflow.
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