2. The balance sheet of Coaldale Cake and Cookie Company provided the information below:

	Dec. 31, 2019	Dec. 31, 2020
Cash	$ 8,000	$ 33,000
Accounts receivable (net)	18,000	24,000
Inventory	16,000	10,000
Long-Term Investments	24,000	20,000
Land	20,000	80,000
Building	60,000	60,000
Accumulated Depreciation – Building	(14,000)	(19,000)
Equipment	40,000	44,000
Accumulated Depreciation - Equipment	(20,000)	(15,000)
Patents	16,000	14,000
	$ 168,000	$251,000
Accounts Payable	$ 16,000	$ 4,000
Accrued Wages Payable	2,000	0
Notes Payable - Long-Term	20,000	38,000
Common Shares	100,000	150,000
Retained Earnings	30,000	59,000
	$ 168,000	$251,000

Additional Data:

1. Net income for the year, $45,000.
2. Depreciation Expense on building for the year, $5,000.
3. Depreciation Expense on equipment for the year, $3,000.
4. Amortization Expense (depreciation) of patents for the year, $2,000.
5. Sales on account, $134,000.
6. Purchases on account, $70,000.
7. Expenses paid in cash (including accrued wages), $30,000.
8. At the end of the year sold equipment costing $16,000 (50% depreciated) for $6,000 cas
9. Purchased land costing $20,000; paid $4,000 cash, gave long-term note for the balance.
10. Paid $8,000 on long-term notes.
11. Sold $20,000 of common shares at par.
12. Purchased equipment costing $20,000; paid one-half cash, balance due in three years (interest-bearing note).
13. Issued 1,500 shares of common shares worth $30,000 for land that cost $40,000, the balance was in cash.
14. Collections on accounts receivable, $128,000.
15. Payment on accounts payable, $82,000.
16. Sold a long-term investment for $17,000 cash.
17. Paid dividends, $16,000.
18. Coaldale Cake and Cookie holds 40% of the Suzie’s Sugar Supply Co. common stock and accounts for the long-term investment on the equity method. Suzie’s Sugar Supply reported a net income for 2020 of $20,000. Suzie’s Sugar Supply paid no cash dividends in 2020. Cost of the investment is equal to 40% of the net assets of Suzie’s Sugar Supply Co.

INSTRUCTIONS:

Prepare a Statement of Cash Flows on the next page for the year ended December 31, 2020 (with proper headings) using the indirect method. (38 marks)