Terry company's 2020 income statement and comparative balance sheets at December 31 of 2019 and 2020are shown. Terry Company Income Statement For the year Ended December 31, 2020 Sales $ 390,000 Cost of Goods Sold 235,000 _______ Gross Profit $ 155,000 Wages Expenses $ 63,000 Depreciation Expense 14,000 Other Operating Expenses 26,000 Income Tax Expense 17,000 120,000 ______ ________ Net Income $ 35,000 Terry Company Balance Sheets Dec. 31, Dec. 31, Assets 2019 2020 Cash $ 16,000 $ 30,000 Accounts Receivable (net) 28,000 35,000 Inventory 110,000 84,000 Prepaid Expense 12,000 8,000 Plant Assets 178,000 130,000 Accumulated Depreciation (76,000) (62,000) Total Assets $ 268,000 $ 225,000 Liabilities and Stockholders' Equity Accounts Payable $ 27,000 $ 14,000 Wages Payable 6,000 2,500 Income Tax Payable 3,000 4,500 Common Stock 135,000 125,000 Retained Earnings 97,000 79,000 ________ _________ Total Liabilities and $ 268,000 $ 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash REQUIRED: Prepare only the Cash Flows from Operations section of the Cash Flow Statement using the indirect method.
Terry company's 2020 income statement and comparative
Terry Company
Income Statement
For the year Ended December 31, 2020
Sales $ 390,000
Cost of Goods Sold 235,000
_______
Gross Profit $ 155,000
Wages Expenses $ 63,000
Other Operating Expenses 26,000
Income Tax Expense 17,000 120,000
______ ________
Net Income $ 35,000
Terry Company
Balance Sheets
Dec. 31, Dec. 31,
Assets 2019 2020
Cash $ 16,000 $ 30,000
Inventory 110,000 84,000
Prepaid Expense 12,000 8,000
Plant Assets 178,000 130,000
Total Assets $ 268,000 $ 225,000
Liabilities and
Accounts Payable $ 27,000 $ 14,000
Wages Payable 6,000 2,500
Income Tax Payable 3,000 4,500
Common Stock 135,000 125,000
________ _________
Total Liabilities and $ 268,000 $ 225,000
Stockholders' Equity
Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash
REQUIRED: Prepare only the
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