Presented below are the financial statements of Stillwater Company. Stillwater Company Comparative Balance Sheets December 31....

   

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Presented below are the financial statements of Stillwater Company. Stillwater Company Comparative Balance Sheets December 31. 2020 Assets: Cash Accounts receivable Inventory Prepaid Rent Equipment Accumulated depreciation 2020 $ 24,000 25,000 41,000 2019 $ 33,000 14,000 25,000 15.000 78,000 12.000 69.000 (26,000) $ 145.000 (24,000) $141,000 Total Liabilities and Stockholders' Equity Accounts Payable Income taxes Payable Bonds Payable Common Stock Additional Paid in Capital - Common Stock Retained Earnings $ 30.000 23.000 20,000 31.000 8,000 33.000 $ 145,000 $ 48,000 19,000 15,000 25,000 6,000 28.000 S.141,000 Total Stilwater Company Income Statement For the Year Ended December 31, 2020 $ 281,000 201,000 80.000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Income from Operations Other Losses & Expenses Loss on the Sales of Equipment Interest Expense Income before Taxes Income Tax Expense Net Income $ 28,000 9.000 37.000 43,000 3,000 5000 8.000 35.000 10,000 $ 25.000 Additional Information: 1. Depreciation Expense of $5,000 is in the selling expense category. 2. Dividends of $20,000 were doclared and puid. 3. During the year equipment was sold for $9,000 cash. This cquipment cost $15.000 originally and had a book value of $12.000 at the time sale. The oquipment sold at a loss of $3.000 as shown on the income statement. 4. Additional equipment was purchased for $6.000 cash. 5. All sales and purchases are on account. Instructions: (a) Prepare a statement of cash flows using the indirect method. Se the format on the next page. (b) Conpute free cash flows. (c) Compute Cash Collected from Customers. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing ectivities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (uscd) by financing activities Net increase (decrease) in cash Cash, January 1. 2020 Cash, December 31, 2020 3. Presented below are the financial statements of Stillwater Company. Stillwater Company Comparative Balance Sheets December 31. 2020 Assets: Cash Accounts receivable Inventory Prepaid Rent Equipment Accumulated depreciation 2020 $ 24,000 25,000 41,000 2019 $ 33,000 14,000 25,000 15.000 78,000 12.000 69.000 (26,000) $ 145.000 (24,000) $141,000 Total Liabilities and Stockholders' Equity Accounts Payable Income taxes Payable Bonds Payable Common Stock Additional Paid in Capital - Common Stock Retained Earnings $ 30.000 23.000 20,000 31.000 8,000 33.000 $ 145,000 $ 48,000 19,000 15,000 25,000 6,000 28.000 S.141,000 Total Stilwater Company Income Statement For the Year Ended December 31, 2020 $ 281,000 201,000 80.000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Income from Operations Other Losses & Expenses Loss on the Sales of Equipment Interest Expense Income before Taxes Income Tax Expense Net Income $ 28,000 9.000 37.000 43,000 3,000 5000 8.000 35.000 10,000 $ 25.000 Additional Information: 1. Depreciation Expense of $5,000 is in the selling expense category. 2. Dividends of $20,000 were doclared and puid. 3. During the year equipment was sold for $9,000 cash. This cquipment cost $15.000 originally and had a book value of $12.000 at the time sale. The oquipment sold at a loss of $3.000 as shown on the income statement. 4. Additional equipment was purchased for $6.000 cash. 5. All sales and purchases are on account. Instructions: (a) Prepare a statement of cash flows using the indirect method. Se the format on the next page. (b) Conpute free cash flows. (c) Compute Cash Collected from Customers. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing ectivities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (uscd) by financing activities Net increase (decrease) in cash Cash, January 1. 2020 Cash, December 31, 2020 3.

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Stillwater Company Statement of Cash flows Indirect method For the year ended December 312020 Cash f... View the full answer