Prepare a statement of cash flows in good form. For cash flows from operations use the indirect method. Show all supporting calculations. Based on your answers to, what stage of the life cycle the firm is in?

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Practice Problem - Cash flow statement The following data refers to Skyline Company. Additional information: the company sold a building for $6,000 and bought equipment for $10,000. There was a land sale, but no patent sale or purchase. Income Statement For the Year Ended December 31, 2020 $ 120,000 (70,000) (13,000) (1,000) (20,000) (2,000) Land Patents Sales Less: Expenses Cost of Goods Sold Depreciation Expense Amortization Expense Salaries Expense Interest Expense Gain on Sale of Building Taxes Expense Net Income Cash Accounts Receivable Inventory Buildings and Equipment, net Total Assets Accounts Payable Interest Payable Mortgage Payable Contributed Capital Retained Earnings Balance Sheet Total Equities 2019 17,000 35,000 16,000 74,000 40,000 18,000 $ 200.000 S (6,000) $ 9.000 2019 S 19,000 S 1,000 30,000 82,000 69,000 $ 200.000 S 2020 28,000 14,000 26,000 66,000 31,000 17,000 S 182.000 S S 2020 5,000 1,000 10,000 112,000 54,000 S 182.000 Change 11,000 (21,000) 10,000 (8,000) (9,000) (1,000) Change (14,000) 1,000 (20,000) 30,000 (15,000) Practice Problem - Cash flow statement The following data refers to Skyline Company. Additional information: the company sold a building for $6,000 and bought equipment for $10,000. There was a land sale, but no patent sale or purchase. Income Statement For the Year Ended December 31, 2020 $ 120,000 (70,000) (13,000) (1,000) (20,000) (2,000) Land Patents Sales Less: Expenses Cost of Goods Sold Depreciation Expense Amortization Expense Salaries Expense Interest Expense Gain on Sale of Building Taxes Expense Net Income Cash Accounts Receivable Inventory Buildings and Equipment, net Total Assets Accounts Payable Interest Payable Mortgage Payable Contributed Capital Retained Earnings Balance Sheet Total Equities 2019 17,000 35,000 16,000 74,000 40,000 18,000 $ 200.000 S (6,000) $ 9.000 2019 S 19,000 S 1,000 30,000 82,000 69,000 $ 200.000 S 2020 28,000 14,000 26,000 66,000 31,000 17,000 S 182.000 S S 2020 5,000 1,000 10,000 112,000 54,000 S 182.000 Change 11,000 (21,000) 10,000 (8,000) (9,000) (1,000) Change (14,000) 1,000 (20,000) 30,000 (15,000)

Answer rating: 100% (QA)

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