The Barden Corporations comparative balance sheets for 20X1 and 20X0 are presented below. Income Statement for the

The Barden Corporation’s comparative balance sheets for 20X1 and 20X0 are presented below.

Barden Corporation
Income Statement for the Year Ended December 31, 20X1
Sales	$ 1,600,000
Gain on sale of marketable securities	2,000
Gain on extinguishment of debt	44,000
Total revenue and gains	1,646,000
Expenses:	720,000
Cost of goods sold	386,000
Personnel costs	40,000
Depreciation	8,000
Loss on sale of equipment	32,000
Interest	16,000
Miscellaneous	1,202,000
Total expenses	444,000
Income before income taxes	200,000
Income tax expense	$ 244,000
Net income	$ 1,600,000

Additional Information:

a. On January 11, 20X1, Barden purchased land for $170,000 cash.

b. On January 23, 20X1, Barden extinguished long-term bonds with a face value of $100,000.

c. On February 8, 20X1, Barden issued 8,400 shares of common stock for cash. The stock was issued at $15 per share.

d. Barden purchased marketable securities for $30,000 on March 15, 20X1; one-half of the securities were later sold on December 3, 20X1.

e. On June 9, 20X1, Barden issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction.

f. On July 1, 20X1, Barden declared and paid a $40,000 cash dividend.

g. On October 18, 20X1, Barden sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash.

Required:

Prepare a cash flow statement using the indirect method for operating activities.

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Barden Corporation Balance Sheets December 31, 20X1 20X0 Increase (Decrease) Assets $ 337,000 $ 246,000 $ 91,000 140,000 Cash Accounts receivable, net 420,000 280,000 15,000 520,000 Marketable securities -0- 15,000 80,000 Inventories Land 440,000 650,000 1,160,000 400,000 250,000 Plant and equipment Less: Accumulated depreciation 1,266,000 (180,000) $2,922,000 (200,000) $2,432,000 ( 106,000) 20,000 $ 490,000 Total assets Liabilities and Stockholders' Equity Liabilities: $ 660,000 $ 500,000 520,000 360,000 1,380,000 $ 160,000 Accounts payable Accrued wages Long-term bonds (due 7/1/20X8) 540,000 260,000 1,460,000 20,000 ( 100,000) 80,000 Total liabilities Stockholders' equity: Common stock and Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 966,000 760,000 206,000 496,000 1,462,000 $2,922,000 292,000 1,052,000 $2,432,000 204,000 410,000 $ 490,000