PREPARE A STATEMENT OF CASH FLOW (INDIRECT METHOD)

Additional Information: 1. Land was sold for cash. 2. Equipment was sold for cash. Book value $ 21,000. The original cost was $ 70,000 3. The investment under the equity method is 25% of Investee's shares. Investee reported net income of $ 400,000 and declared dividends of $ 80,000. 4. The change in Accumulated OCI did not affect the income and expense statement or the cash. 5. The change in the HTM bonds was exclusively due to the amortization of the premium.

Brandon Company Comparative Balance Sheets December 31 2019 2018 Cash and Equivalents Accounts receivable Allowance for doubtful accts Inventories Interest receivable Dividends receivable Prepaid insurance $ 970,490 222,000 (6,600) 200,000 $ 290,000 180,000 (5,400) 240,000 9,375 20,000 90,000 15,000 75,000 300,000 259,620 200,000 350,000 (50,000) 270,000 (108,000) 320,000 $2,336,220 Equity method investment 380,000 Investment in bonds (HTM) 258,505 Land 100,000 Buildings 350,000 Accumulated depreciation (60,000) Equipment 300,000 Accumulated depreciation (107.000) Patents (net) 280,000 Total assets $ 3,006,770 Accounts payable $ 275,000 Dividends payable 60,000 Salaries payable 11,000 Income taxes payable 50,000 Common stock 677,299 Paid-in capital from Tr Stock 100,000 Retained earnings 1,340,000 Accumulated other comprehensive income 493,471 Treasury stock Total liabilities and Sh Equity $3,006,770 $ 250,000 40,000 15,000 40,000 677,299 1,100,000 413,921 (200,000) $2.336.220 Brandon Company Income Statement For the Year Ended December 31, 2019 Sales revenue $ 1,077,000 Cost of good sold (500,000) Salaries expense (200,000) Bad debts expense (1,200) Depreciation/ amortization expense (98,000) Insurance expense (25,000) Equity method revenue 100,000 Interest revenue (bonds) 17,635 Gain on sale of land 25,000 Loss on sale of equipment (10,000) Income tax expense (85,435) Net income $ 300,000 Informacin adicional: 1. Se vendi terreno en efectivo. 2. Se vendi equipo en efectivo. Valor en los libros $21,000 3. La inversin bajo equity method es de 25% de las acciones de Investee. Investee report ingreso neto de $400,000 y declar dividendos de $80,000. 4. El cambio en Accumulated OCI no afect el estado de ingresos y gastos ni el efectivo. 5. El cambio en los bonos HTM se debi exclusivamente a la amortizacin de la prima