Exercise 23-21 Below is the comparative balance sheet for Kingbird Corporation. Cash Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Inventory Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Delivery equipment Accumulated depreciation-delivery equipment Patents Dec. 31, 2020 $16,500 24,800 43,000 (1,800 ) 4,100 81,600 49,600 124,700 (30,300 ) 52,800 (19,100) 38,700 (22,200) 15,000 $377,400 Dec. 31, 2019 $20,800 18,900 45,100 (1,900 ) 2,600 64,800 49,600 73,700 (22,800 ) 46,400 (15,400 ) 38,700 (20,700 ) -0- $299,800 Accounts payable Short-term notes payable (trade) Accrued payables Mortgage payable Bonds payable Common stock Paid-in capital in excess of par $25,800 4,100 3,000 72,200 49,600 140,800 9,900 $16,000 5,900 4,700 53,100 62,400 102,600 4,100 Common stock Paid-in capital in excess of par Retained earnings 140,800 9,900 72,000 $377,400 102,600 4,100 51,000 $299,800 Dividends in the amount of $14,900 were declared and paid in 2020. From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. The short-term investments are considered available-for-sale and no unrealized gains or losses have occurred on these securities. (Enter amounts either in debit or in credit column in Statement of Cash Flows Effects except for totals.) KINGBIRD CORPORATION WORKSHEET FOR PREPARATION OF STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020 2020 Reconciling Items Balance at 12/31/19 Debit Credit $20,800 Debits Balance at 12/31/20 $16,500 Cash 4300 18,900 5900 Short-term investments Accounts receivable 2100 45,100 2,600 24,800 43,000 4,100 1500 Prepaid expenses Inventory 64,800 81,600 16800 Land 49,600 49,600 73,700 51000 124,700 Buildings Equipment Equipment (Delivery) 46,400 6400 52,800 38,700 38,700 Equipment (Delivery) 38,700 38,700 Patents 15000 15,000 $450,800 Total debits $360,600 Credits Accounts payable $16,000 9800 $25,800 $1 Notes payable 5,900 1800 4,100 Accrued liabilities 4,700 1700 3,000 Allowance for doubtful accounts 1,900 100 1,800 22,800 7500 30,300 Accumulated Depreciation-Building Accumulated Depreciation Equipment 15,400 3700 19,100 Accumulated Depreciation-Delivery Equipment 20,700 1500 22,200 Mortgage payable 53,100 19100 72,200 Bonds payable 62,400 12800 49,600 Common stock 102,600 38200 140,800 4,100 5800 9,900 Paid-in capital in excess Retained earnings Total credits 51,000 $360,600 14900 35900 72,000 $450,800 Kingbird Corporation Statement of Cash Flows Effects Cash Flows from Operating Activities Not Income Statement of Cash FIOWS Effects Cash Flows from Operating Activities Net Income $ Depreciation