Acct 2208 corp. prepared the following comparable Balance sheet for years ending 2020 and 2019:   ACCT 2208 Corp.

Balance Sheet at Dec 31, 2020                                                                    

Assets	2020	2019
Cash	($12,775)	$23,750
Accounts Receivables	65,250	58,500
Inventories	38,000	32,000
Long term investments (FV-NI)	21,250	38,500
Equipment	22,500	11,250
Accumulated Depreciation- equipment	-5,500	-1,500
Building	52,500	41,250
Accumulated Depreciation- building	-6,875	-3,250
Land	34,000	32,500
Total Assets	$208,350	$233,000
Liabilities & Shareholder’s Equities
Accounts Payable	24,750	30,000
Accrued Payables	2,375	1,125
Income tax payable	1,500	1,000
Long term note payable	6,000	15,000
Common Shares, issued & outstanding	165,000	140,000
Retained Earnings	8,725	45,875
Total liabilities & Shareholder’s Equities	$208,350	$233,000

ACCT 2208 Corp.

Statement of income for the period ended Dec 31, 2020

Sales Revenue	$ 590,250
Cost of Goods sold	(380,000)
Gross Profit	210,250
Operating expense (includes depreciation)	(179,400)
Income from operating	30,850
Other income and other losses	200
Income Tax expense	(40,000)
Net loss	($8,950)

                                                                 

Additional Information:

1-     During 2020, ACCT 2208 declare and paid cash dividend

2-     During 2020, equipment had cost of $3,750 and accumulated amortization of $750 were sold during the year for $ 2,200 cash

3-     During 2020, Investments at FV-NI that cost $27,750 and had a fair value at Dec 31, 2019, of $24,750 were sold during the year for $25,750

Instructions:

Prepare the Statement of cash flows for the year ended Dec 31, 2020 using indirect method.

Answer rating: 100% (QA)

ACCT 2208 Corp Statement of Cash Flows Indirect Method For year Ended December 31 2020 Cash Flows from operating activities In Net Income 8950 Adjustm... View the full answer