Powell Corporation's comparative balance sheets are presented below.

POWELL CORPORATION

Comparative Balance Sheets

December 31 2020 2019

2020 2019

Cash $ 19,300 $ 10,700

Accounts receivable 18,200 23,400

Land 18,000 26,000

Building 70,000 70,000

Accumulated depreciation (15,000) (10,000)

Total $110,500 $120,100

Accounts payable $ 12,370 $31,100

Common stock 75,000 69,000

Retained earnings 23,130 20,000

Total $110,500 $120,100

Additional information:

1. Net income in the year ended Dec 31, 2020 was $25,630. Dividends declared and paid were $22,500.

2. The land was sold for $5,900. (Hint: you will need to figure out if there is any gain or loss from the sale)

Prepare a statement of cash flows for 2020 using the indirect method. Points are earned not only for correctly computing the numbers for various line items and subtotals, but also for clearly and accurately marking Headings, section headings, etc.