Exercise 23-11

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Condensed financial data of Flounder Company for 2020 and 2019 are presented below.

FLOUNDER COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
		2020			2019
Cash		$1,780			$1,130
Receivables		1,740			1,290
Inventory		1,610			1,870
Plant assets		1,930			1,710
Accumulated depreciation		(1,210	)		(1,150	)
Long-term investments (held-to-maturity)		1,290			1,440
		$7,140			$6,290
Accounts payable		$1,180			$900
Accrued liabilities		190			240
Bonds payable		1,410			1,590
Common stock		1,920			1,690
Retained earnings		2,440			1,870
		$7,140			$6,290

FLOUNDER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue		$6,880
Cost of goods sold		4,650
Gross margin		2,230
Selling and administrative expenses		940
Income from operations		1,290
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,370
Income tax expense		540
Net income		830
Cash dividends		260
Income retained in business		$570

Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the indirect method.