The following comparative balance sheets 2019 & 2020 and additional information for "National Company" are given: Assets Dec. 31, 2020 $156,000 Dec. 31, 2019 $26,000 Cash Accounts Receivable 52,000 48,000 Inventory and supplies 30,000 58,000 Investments 0. 36,000 Machines 114,000 104,000 Accumulated depreciation-Machines (28,000) (20.000) Total Assets $324,000 $252,000 Liabilities & Stockholders' Equity Note payable Bonds payable (long-term) $74,000 $ 54,000 74,000 94,000 Common Stock 80,000 44,000 Retained Eamings 96,000 60,000 Total Liablities & Stockholders' $324,000 $252.000
The following comparative balance sheets 2019 & 2020 and additional information for "National Company" are given: Assets Dec. 31, 2020 $156,000 Dec. 31, 2019 $26,000 Cash Accounts Receivable 52,000 48,000 Inventory and supplies 30,000 58,000 Investments 0. 36,000 Machines 114,000 104,000 Accumulated depreciation-Machines (28,000) (20.000) Total Assets $324,000 $252,000 Liabilities & Stockholders' Equity Note payable Bonds payable (long-term) $74,000 $ 54,000 74,000 94,000 Common Stock 80,000 44,000 Retained Eamings 96,000 60,000 Total Liablities & Stockholders' $324,000 $252.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Income Statement & Additional information:
1. Net income for the current year ending December 31, 2020 is $58,000.
2. Sold investments for cash, cost $36,000 and resulting in $6,000 gain.
3. The only changes affecting retained earnings are net income and cash dividends paid.
4. All the following transactions are in cash: Purchased new machines; repay bonds payable; and issuance common stock.
Required:
Prepare the full statement of cash flows using indirect method for the year ended December 31, 2020.
Transcribed Image Text:The following comparative balance sheets 2019 & 2020 and additional information for "National Company" are given:
Assets
Dec. 31,
2020
$156,000
Dec. 31,
2019
$26,000
Cash
Accounts Receivable
52,000
48,000
Inventory and supplies
Investments
30,000
58,000
36,000
Machines
114,000
104,000
Accumulated depreciation-Machines
(28,000)
$324,000
(20,000)
Total Assets
$252,000
Liabilities &Stockholders' Equity
Note payable
$74,000
$ 54,000
Bonds payable (long-term)
74,000
94,000
Common Stock
80,000
44,000
Retained Earmings
96,000
60,000
Total Liablities & Stockholders'
$324,000
$252,000
Equity
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