CASH FLOWS PROBLEM

REQUIRED: Prepare the three sections of the statement of cash flows. Be certain to label all numbers presented. The HUBB Corporation has the following information available from the 2020 Income Statement and the 2019 and 2020 comparative balance sheets: Sales $ 450,000 COGS - 220,000 GP 230,000 - Oper Exp - 130,000 - Interest Exp -10,000 + Gain on Sale + 2,000 - Taxes - 32,000 Net Income 60,000

2020 2019 Cash $49,000 $62,000 Acct Receivable 55,000 40,000 Inventory 190,000 175,000 Ppd Insurance -0- 4,000 Fixed Assets Accumulated Depreciation

200,000 34,000

135,000 30,000 Acct Payable 10,000 12,000 Interest Payable 7,000 2,000 Income Tax Payable 3,000 6,000 Accrued Salary Payable 3,000 2,000 Note Payable 145,000 100,000 Common Stock ($10 par) 140,000 120,000 APIC- C/S 5,000 -0- Retained Earnings 147,000 144,000 *Purchased new equipment, $10,000. *purchased new office equipment, $75,000 on a 3-yr note. *Sold truck (cost $20,000, acc depr of $15,000) for $7,000. *Paid off $30,000 of Notes Payable. *Sold 2,000 shares of Common stock. *Paid dividends.

All long-term assets are listed under the broad account "Fixed Assets"

There was a non-cash transaction - the purchase of equipment entirely on a note- this transaction will have no cash impact on Investing or on Financing at all.

You need to back into Cash from sale of stock. Re-create the stock sale entry for the right cash. You need to back into both depreciation and dividend.