The following data are taken from the records of Alee Company.

Additional information:

1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2019, were sold in 2020 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings.

2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings.

3. Net income as reported on the income statement for the year was $57,000.

4. Dividends paid amounted to $10,000.

5. Depreciation charged for the year was $20,000.

Instructions

Prepare a statement of cash flows for the year 2020 using the indirect method.

Transcribed Image Text:

December 31, December 31, 2020 2019 $ 15,000 $ 8,000 Cash Current assets other than cash 85,000 60,000 Long-term debt investments 10,000 53,000 Plant assets 215,000 335,000 $445,000 $336,000 $ 20,000 $ 40,000 Accumulated depreciation Current liabilities 40,000 22,000 Bonds payable Common stock 75,000 -0- 254,000 254,000 Retained earnings 56,000 20,000 $445,000 $336,000