Question 29 of 34 Current Attempt in Progress Your answer is partially correct. The following information is available for Sally Corporation for the year ended December 31, 2020: Collection of principal on long-term loan to a supplier $15,000 Acquisition of equipment for cash 10,000 Proceeds from the sale of long-term investment at book value 20,000 Issuance of common stock for cash 27,000 Depreciation expense 28,000 Redemption of bonds payable at carrying (book) value 35,000 Payment of cash dividends 15,000 Net income 25,000 Purchase of land by issuing bonds payable 45,000 5.01/5.5 In addition, the following information is available from the comparative balance sheet for Sally at the end of 2019 and 2020: 2020 2019 Cash $66,000 $14,000 Accounts receivable (net) 20,000 16,000 Prepaid insurance 18,000 13,000 Total current assets $104,000 $43,000 Accounts payable $30,000 $20,000 Salaries payable 3,000 7,000 Total current liabilities $33,000 $27,000 Prepare Sally's statement of cash flows for the year ended December 31, 2020 using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities SALLY CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Prepaid Insurance Increase in Accounts Payable Decrease in Salaries Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Collection of Long-Term Loan $ 28000 -4000 -5000 10000 15000 Proceeds from the Sale of Investments 20000 Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period -10000 27000 -35000 -15000 25000 25000 50000 25000 -23000 52000 14000 66000 eTextbook and Media Save for Later Attempts: 2 of 5 used Submit Answer