Below is the comparative balance sheet for Stevie Wonder Corporation.

Dividends in the amount of $15,000 were declared and paid in 2020.

Instructions

From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. The short-term investments are considered available-for-sale debt securities and no unrealized gains or losses have occurred on these securities.

Transcribed Image Text:

Dec. 31, 2020 Dec. 31, 2019 Cash Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Inventory $ 16,500 $ 21,000 25,000 43,000 (1,800) 4,200 19,000 45,000 (2,000) 2,500 65,000 81,500 Dec. 31, Dec. 31, 2020 2019 Land $ 50,000 $ 50,000 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Delivery equipment Accumulated depreciation-delivery equipment 125,000 73,500 (30,000) (23,000) 53,000 46,000 (19,000) (15,500) 39,000 (20,500) 39,000 (22,000) Patents 15,000 -0- $379,400 $300,000 Dec. 31, Dec. 31, 2020 2019 $ 26,000 $ 16,000 Accounts payable Short-term notes payable (trade) Accrued payables Mortgage payable Bonds payable 4,000 6,000 3,000 4,600 73,000 53,400 50,000 62,500 Common stock 140,000 102,000 Paid-in capital in excess of par Retained earnings 10,000 4,000 73,400 51,500 $379,400 $300,000