Instructions: using the following information, prepare the operating activities section of the statement of cash flows.

Presented below are Expo Companys comparative 12/31/20 and 12/31/19 Balance Sheets

and its Income Statement for the year ended 12/31/20.

Expo Company

Comparative Balance Sheets

December 31, 2020 and 2019

ASSETS: 2020 2019 Difference

Cash 76,000 23,000 + 53,000

Accounts receivable (net) 136,000 180,000 - 44,000

Inventory 70,000 50,000 + 20,000

Prepaid Insurance 9,000 18,000 - 9,000

Land 122,000 0 +122,000

Equipment 110,000 80,000 + 30,000

Accumulated depreciation-equipment ( 15,000) ( 10,000) + 5,000

508,000 341,000

LIABILITIES AND STOCKHOLDERS EQUITY

Accounts payable 60,000 70,000 - 10,000

Salaries payable 7,000 4,000 + 3,000

12% Bonds payable (due 2022) 100,000 0 +100,000

Common stock, $5 par 300,000 250,000 + 50,000

Retained earnings 41,000 17,000 + 24,000

508,000 341,000

Expo Company

Income Statement

For the Year Ended December 31, 2020

Sales 360,000

Less: cost of goods sold (193,000)

Gross Profit 167,000

Less: Operating Expenses

Salaries expense 70,000

Rent expense 36,000

Depreciation expense 10,000 (116,000)

Net Operating Income 51,000

Other Losses:

Loss on sale of equipment ( 1,000)

Net Income before income tax 50,000

Less: income tax expense ( 16,000)

Net Income 34,000

The following additional information applicable to 2020 is provided:

1. Land was purchased for $122,000 cash.
2. Equipment which cost $20,000 and had accumulated depreciation of $5,000 was sold for cash.
3. $50,000 of equipment was purchased by issuing 10,000 shares of common stock at par value..
4. $100,000 of 12% bonds payable were issued for cash.
5. $10,000 of cash dividends were declared and paid during 2020.