Canyon Canoe Company's comparative balance sheet is shown below. 2019 amounts are assumed, but include several transactions from prior chapters.

Additional data follow:
1. The income statement for 2019 included the following items:
a. Net income, $417,000.
b. Depreciation expense for the year, $34,330.
c. Amortization on the bonds payable, $254.
2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock.
3. The company issued bonds payable with a face value of $210,000, receiving cash of $208,476.
4. The company distributed 4,000 shares of common stock in a stock dividend when the market value was $4.50 per share. All other dividends were paid in cash.
5. The common stock, except for the stock dividend, was issued for cash.
6. The cash receipt from the notes payable in 2019 is considered a financing activity because it does not relate to operations.
Requirement
Prepare the statement of cash flows for the year ended December 31, 2019, using the indirect method.

Transcribed Image Text:

CANYON CANOE MPANY Comparative Balance Sheet December 31, 2018 and 2019 2019 2018 Assets Current Assets: $ 523,693 $ 12,125 Cash Short-term Investments, net 23,840 Accounts Receivable, net 7,600 2,422 Merchandise Inventory 355 Office Supplies 60 165 Prepaid Rent 2,000 Property, Plant, and Equipment: Land 155,000 85,000 Building 35,000 610,000 Canoes 12,000 12,000 Office Fumiture and Equipment 150,000 Accumulated Depreciation-PP&E (35,180) (850) $ 153,040 $ 1,442,190 Total Assets Liabilities Current Liabilities: $ 3,050 Accounts Payable 5,195 Utilities Payable Telephone Payable Wages Payable 745 295 700 325 4,250 1,250 Notes Payable 15,000 Interest Payable 350 50 Unearned Revenue 500 350 Long-term Liabilities: Notes Payable 7,200 7,200 405,000 Mortgage Payable Bonds Payable 210,000 (1,270) Discount on Bonds Payable Total Liabilities 647,670 12,520 Stockholders' Equity Paidin Capital: Preferred Stock 60,000 Paid-In Capital in Excess of Par-Preferred 10,000 186,000 Common Stock 136,000 Paid-In Capital in Excess of Par-Common 150,000 Retained Earnings Total Stockholders' Equity 388,520 4,520 794,520 140,520 Total Liabilities and Stockholders' Equity $ 1,442,190 $ 153,040