Question: I need to prepare a statement of cash flows using the indirect method using this information Assets: Dec. 31 st, 2020 Dec. 1 st, 2019
I need to prepare a statement of cash flows using the indirect method using this information
| Assets: | Dec. 31st, 2020 | Dec. 1st, 2019 |
| Cash | 680,000 | 360,000 |
| Investments | 110,000 | 290,000 |
| Accounts receivable | 115,000 | 130,000 |
| Inventory | 230,000 | 195,000 |
| Prepaid advertising | 40,000 | 25,000 |
| Property & Equipment, net | 435,000 | 500,000 |
| Patents, net | 180,000 | 50,000 |
| Total Assets | 1,790,000 | 1,550,000 |
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| Liabilities & Stockholders Equity |
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| Accounts Payable | 265,000 | 284,000 |
| Wages Payable | 30,000 | 21,000 |
| Notes Payable | 650,000 | 350,000 |
| Common Stock & APIC | 600,000 | 600,000 |
| Treasury Stock | (250,000) | (50,000) |
| Retained Earnings | 495,000 | 345,000 |
| Total Liabilities and stockholders equity | 1,790,000 | 1,550,000 |
| Income Statement |
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| Sales | 3,280,000 |
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| Cost of Goods Sold | 1,820,000 |
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| Depreciation Expense | 140,000 |
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| Amortization Expense | 20,000 |
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| Advertising Expense | 165,000 |
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| Wages Expense | 440,000 |
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| Other Operating Expense | 370,000 |
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| Operating Income | 325,000 |
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| Interest Expense | 25,000 |
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| Loss of Sale of PP&E | 5,000 |
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| Gain on sale of investments | 20,000 |
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| Income before tax expense | 315,000 |
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| Income tax expense | 105,000 |
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| Net Income | 210,000 |
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Additional Information:
The company sold investments that had an initial cost of $180,000 for $200,000 cash.
The company purchased new PP&E for $95,000 cash.
The company purchased a patent for $150,000 cash.
The company sold some of its PP&E for $15,000 cash. The PP&E that was sold had an initial cost of $260,000 and Accumulated Depreciation of $240,000.
The company borrowed $300,000 from a bank.
The company declared and paid $60,000 in
dividends.
The company spent $200,000 repurchasing its stock
| Kirkland Corporation Statement of Cash Flows (Indirect Method) For the year ended December 31, 2020 (In $) |
| CASH FLOWS FROM OPERATING ACTIVITIES |
| Net Income |
| Adjustments to reconcile net income with cash from operations: |
| Net cash provided by/(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES |
| Net cash provided by/(used in) investing activities |
| CASH FLOWS FROM FINANCING ACTIVITIES |
| Net cash provided by/(used in) financing activities |
| Net change in cash |
| Cash at beginning of the year |
| Cash at end of the year |
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