Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31...

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Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85,000) $2.739.000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40 000) $2,500.000 Liabilities and Stockholders' Equity Accounts payable Salaries and wages payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 104,000 42,000 1,150,000 1,338,000 I 105 000 $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70,000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common stock Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method. 1 Add File Using the Balance Sheet of ABC Inc. given above calculate the following 4 points ratios for 2021 (1) LIQUIDITY POSITION-CURRENT RATIO (2) PROFITABILTY POSITION-PROFIT MARGIN (NET SALES=$5000,000 (3) SOLVENCY POSITION- DEBT TO ASSET RATIO (4) ROE (Return on Equity) Your answer Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85,000) $2.739.000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40 000) $2,500.000 Liabilities and Stockholders' Equity Accounts payable Salaries and wages payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 104,000 42,000 1,150,000 1,338,000 I 105 000 $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70,000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common stock Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method. 1 Add File Using the Balance Sheet of ABC Inc. given above calculate the following 4 points ratios for 2021 (1) LIQUIDITY POSITION-CURRENT RATIO (2) PROFITABILTY POSITION-PROFIT MARGIN (NET SALES=$5000,000 (3) SOLVENCY POSITION- DEBT TO ASSET RATIO (4) ROE (Return on Equity) Your answer

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Answer to Question INDIRECT METHOD ABC Inc Statement of Cash Flows For the year ended Dec 312021 Par... View the full answer