Question: Please help me! and also please show me how its done. Thank you! Problem 4: Comparative balance sheets for 2019 and 2020 and an income


Please help me! and also please show me how its done. Thank you!


Problem 4: Comparative balance sheets for 2019 and 2020 and an income statement for 2020 are provided below for Harry's shop. Balance Sheet As of December 31 st Assets 2020 2019 Cash $1,550 $1, 100 Account Receivable 550 1,200 Inventory 1,800 1,300 Investment - Trading Securities 970 970 Fair Value Adjustment 70 0 Property Plant & Equipment 12,000 10,800 Accumulated Depreciation - PPE (4,650) (5,400) Goodwill $400 $600 Total Assets $12,690 $ 10,570 Liabilities Accounts Payable $200 $550 Accrued Wages 300 220 Convertible Bonds Payable 0 300 Bonds Payable 3,400 1,800 Discount on Bonds Payable (10 (12) Total Liabilities $4,390 $2,858 Stockholders' Equity Common Stock 4,300 3, 100 Paid-in capital - Common Stock 300 100 Retained Earnings 3,700 4,512 Total Liability & Stockholders' Equity $12,690 $10,570 Income Statement During the Year Ended December 31 st Revenues 2020 Sales Revenue $25,600 Dividend Revenue 110 Unrealized Holding Gain/Loss - Income 70 Total Net Sales $25,780 Expenses Cost of Goods Sold $21,300 Operating Expenses 4,287 Interest Expense 45 Loss due to impairment of Goodwill 200 Loss on sale of Machinery 70 Total Expenses 25,902 Income Before Income Tax (122) Income Tax Expense 0 Net Income (Loss) $ (122)Additional Information from the 2020 accounting records: e. Harry owns a 10% of Larry Inc. which is labeled as a Trading Security that increased in market value during 2020. Law gave out $1,100 worth of dividends to all of its owners during 2020. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Deprecation was calculated using the straight-line method and exactly 90% of its useful life was used up. $1,600 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash. Depreciation is included as part of Operating Expense. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock. Required: Prepare the statement of cash ow under the indirect method. Your nished product should have all the information disclosed on a formal statement, including a list of noncash transactions. (17 points)
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