The following data are taken from the records of Alee Company.      December 31,2020    December 31,2019 Cash $ 15,000 $  8,000 Current assets other than cash   85,000   60,000 Long-term debt investments   10,000   53,000 Plant assets  335,000  215,000   $445,000 $336,000 Accumulated depreciation $ 20,000 $ 40,000 Current liabilities   40,000   22,000 Bonds payable   75,000 –0– Common stock  254,000  254,000 Retained earnings   56,000   20,000   $445,000 $336,000 Additional information: Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2019, were sold in 2020 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. Plant assets that cost $50,000 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings. Net income as reported on the income statement for the year was $57,000. Dividends paid amounted to $10,000. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash flows for the year 2020 using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data are taken from the records of Alee Company.

     December 31,
2020
   December 31,
2019
Cash $ 15,000 $  8,000
Current assets other than cash   85,000   60,000
Long-term debt investments   10,000   53,000
Plant assets  335,000  215,000
  $445,000 $336,000
Accumulated depreciation $ 20,000 $ 40,000
Current liabilities   40,000   22,000
Bonds payable   75,000 –0–
Common stock  254,000  254,000
Retained earnings   56,000   20,000
  $445,000 $336,000

Additional information:

  1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2019, were sold in 2020 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings.
  2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings.
  3. Net income as reported on the income statement for the year was $57,000.
  4. Dividends paid amounted to $10,000.
  5. Depreciation charged for the year was $20,000.

Instructions

Prepare a statement of cash flows for the year 2020 using the indirect method.

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