Problem 23-01

The following are Kingbird Corp.s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
		2020			2019			Increase (Decrease)
Cash		$821,300			$694,000			$127,300
Accounts receivable		1,124,400			1,158,200			(33,800	)
Inventory		1,852,600			1,702,600			150,000
Property, plant, and equipment		3,300,400			2,951,400			349,000
Accumulated depreciation		(1,174,500	)		(1,048,100	)		(126,400	)
Investment in Myers Co.		312,300			273,800			38,500
Loan receivable		250,100						250,100
Total assets		$6,486,600			$5,731,900			$754,700
Accounts payable		$1,019,600			$959,800			$59,800
Income taxes payable		29,800			50,100			(20,300	)
Dividends payable		79,400			99,100			(19,700	)
Lease liabililty		408,500						408,500
Common stock, $1 par		500,000			500,000
Paid-in capital in excess of parcommon stock		1,504,000			1,504,000
Retained earnings		2,945,300			2,618,900			326,400
Total liabilities and stockholders equity		$6,486,600			$5,731,900			$754,700

Additional information:

1.		On December 31, 2019, Kingbird acquired 25% of Myers Co.s common stock for $273,800. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,095,200. Myers reported income of $154,000 for the year ended December 31, 2020. No dividend was paid on Myerss common stock during the year.
2.		During 2020, Kingbird loaned $309,100 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $59,000, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Kingbird sold equipment costing $59,500, with a carrying amount of $38,400, for $39,900 cash.
4.		On December 31, 2020, Kingbird entered into a capital lease for an office building. The present value of the annual rental payments is $408,500, which equals the fair value of the building. Kingbird made the first rental payment of $59,800 when due on January 2, 2021.
5.		Net income for 2020 was $405,800.
6.		Kingbird declared and paid the following cash dividends for 2020 and 2019.

		2020		2019
Declared		December 15, 2020		December 15, 2019
Paid		February 28, 2021		February 28, 2020
Amount		$79,400		$99,100

Prepare a statement of cash flows for Kingbird Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)