SHEFFIELD COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $74,000 $22,000 Accounts receivable 85,000 75,000 Inventory 168,000 190,000 Land 72,000 102,000 Equipment 261,000 202,000 Accumulated depreciation - equipment (67,000) (32,000) Total $593,000 $559,000 Liabilities and Stockholders' Equity Accounts payable $38,000 $48,000 Bonds payable 152,000 213,000 Common stock ($1 par) 219,000 175,000 Retained earnings 184,000 123,000 Total $593,000 $559,000 Additional information: 1. Net income for 2020 was $98,000. 2. Cash dividends of $37,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost. (a) 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).)
SHEFFIELD COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $74,000 $22,000 Accounts receivable 85,000 75,000 Inventory 168,000 190,000 Land 72,000 102,000 Equipment 261,000 202,000 Accumulated depreciation - equipment (67,000) (32,000) Total $593,000 $559,000 Liabilities and Stockholders' Equity Accounts payable $38,000 $48,000 Bonds payable 152,000 213,000 Common stock ($1 par) 219,000 175,000 Retained earnings 184,000 123,000 Total $593,000 $559,000 Additional information: 1. Net income for 2020 was $98,000. 2. Cash dividends of $37,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost. (a) 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![SHEFFIELD COMPANY
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$74,000
$22,000
Accounts receivable
85,000
75,000
Inventory
168,000
190,000
Land
72,000
102,000
Equipment
261,000
202,000
Accumulated depreciation - equipment
(67,000) (32,000)
Total
$593,000
$559,000
Liabilities and Stockholders' Equity
Accounts payable
$38,000
$48,000
Bonds payable
152,000
213,000
Common stock ($1 par)
219,000
175,000
Retained earnings
184,000
123,000
Total
$593,000
$559,000
Additional information:
1.
Net income for 2020 was $98,000.
2.
Cash dividends of $37,000 were declared and paid.
3.
Bonds payable amounting to $61,000 were redeemed for cash $61,000.
4.
Common stock was issued for $44,000 cash.
5.
Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost.
(a)
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).)
SHEFFIELD COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7166f556-b438-4b40-b98f-4009ae0ebd1b%2F41115503-bff3-4254-b69f-b93d1785979b%2Fc0j2mhb_processed.png&w=3840&q=75)
Transcribed Image Text:SHEFFIELD COMPANY
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$74,000
$22,000
Accounts receivable
85,000
75,000
Inventory
168,000
190,000
Land
72,000
102,000
Equipment
261,000
202,000
Accumulated depreciation - equipment
(67,000) (32,000)
Total
$593,000
$559,000
Liabilities and Stockholders' Equity
Accounts payable
$38,000
$48,000
Bonds payable
152,000
213,000
Common stock ($1 par)
219,000
175,000
Retained earnings
184,000
123,000
Total
$593,000
$559,000
Additional information:
1.
Net income for 2020 was $98,000.
2.
Cash dividends of $37,000 were declared and paid.
3.
Bonds payable amounting to $61,000 were redeemed for cash $61,000.
4.
Common stock was issued for $44,000 cash.
5.
Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost.
(a)
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).)
SHEFFIELD COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2020
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