Dhofar Metal Corporation’s comparative Balance sheets are presented below.

DHOFAR METAL Corporation
Comparative Balance Sheets, Dec. 31

2020 2019
Cash $ 30,400 $ 35,400
Accounts receivable 50,400 44,600
Investments 40,000 32,000
Equipment 120,000 140,000
Accumulated depreciation – Equipment (28,000) (20,000)
Total $212,800 $232,000
Accounts payable $ 29,200 $ 22,200
Bonds payable 20,000 60,000
Common stock 100,000 90,000
Retained earnings 63,600 59,800
Total $212,800 $232,000

Additional Information:
a. Net income was $36,600. Dividends declared and paid were $32,800.
b. Equipment which cost $20,000 and had accumulated depreciation of
$2,400
was sold for $6,600.
c. No noncash investing and financing activities occurred during 2020.
Required:
Prepare a statement of cash flows for 2020 using the indirect method.

Answer rating: 100% (QA)

Solution Dhofar Metal Corporation Statement of Cash Flows For the year 2020 Cash flows from Operatin... View the full answer