Following is a statement of cash flows (indirect method) for Hartford Inc. for the year ended December 31, 2020. Also shown is a partially completed comparative balance sheet as of December 31, 2020 and 2019:

Required:

a. Complete the December 31, 2020 and 2019 balance sheets.

b. Prepare a statement of changes in retained earnings for the year ended December 31, 2020.

Transcribed Image Text:

HARTFORD INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities: $ 54,000 Net Income Add (deduct) items not affecting cash: Depreclation expense Decrease In accounts recelvable 270,000 138,000 Increase In Inventory (42,000) Increase In notes payable 72,000 Decrease in accounts payable (36,000) $ 456,000 Net cash provlded by operating activities Cash Flows from Investing Activities: $(300,000) Purchase of equlpment Purchase of buldings. (288,000) $(588,000) Net cash used by Investing activitles Cash Flows from Financing Activities: $ 30,000 Proceeds from short-term debt Cash used for retrement of long-term debt (150,000) Proceeds from Issuance of common stock 60,000 Payment of cash dividends on common stock (18,000) $ 78,000) $ 210,000) Net cash used by financing activitles Net decrease In cash for the year HARTFORD INC. Comparative Balance Sheets At December 21, 2020 and 2019 2020 2019 Assets Current assets: $ 528,000 24 Cash Accounts recelvable 438,000 Inventory 336,000 24 Total current assets $ 240,000 24 Land Buildings and equlpment Less: Accumulated depreclation 1,560,000 (738,000) Total land, bulldings, and equipment 2$ 24 Total assets Liabilities Current llabilitles: $ 174,000 Accounts payable $4 Short-term debt 192,000 Notes payable 216,000 Total current liabilities Long-term debt $ 510,000 Stockholders' Equity $ 240,000 Common stock Retained earnings Total stockholders' equity. 24 Total llabilitles and stockholders' equity. 24