The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020:

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The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020: NIAKWA INDUSTRIES Statement of Earnings Net sales Cost of sales Gross profit For the Year Ended December 31, 2020 $1,900,000 980,000 920,000 Operating expenses Depreciation expense property, plant and equipment 200,000 Amortization expense patents Other operating expenses Earnings from operating activities 27,000 197,000 496,000 Non-operating activities Interest expense Loss on sale of land Net earnings before income tax Income tax (30%) Net Earnings 160,000 100,000 236,000 70,800 $ 165.200 NIAKWA INDUSTRIES Comparative Statement of Financial Position December 31, 2020 2020 Assets Current Assets 2019 $ 200,000 $ 405,200 180,000 460,000 Cash Accounts Receivable 350,000 320,000 Investments Inventory Total Current Assets 2,336,000 3,381,200 2.090,000 2,960,000 Non-Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Patents, net Total Non-Current Assets Total Assets 880,000 (760,000) 192,000 312,000 $3.693.200 800,000 (560,000) 219,000 459,000 $3.419.000 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Accrued Payables Dividends Payable Income Taxes Payable $ 389,000 160,000 80,000 27,000 656,000 $ 265,000 240,000 80,000 42.000 627,000 Total Current Liabilities Non-Current Liabilities 180,000 900.000 Note Payable (Long-Term) 560,000 Bonds Pavable 400.000 Additional information: 1. Equipment was purchased for $400,000 cash in 2020. 2. Cash dividends of $40,000 were paid in 2020. 3. Land was sold for $220,000 cash in 2020. 4. Changes in the note payable and bonds payable accounts were through cash transactions. 5. Any additional transactions were non-cash transactions and can be ignored for this question. Required: Prepare a complete Statement of Cash Flows for 2020 using the indirect method for the operating section. Ignore supplementary disclosure. The Niakwa Industries prepared the following statement of earnings and comparative statement of financial position for 2020: NIAKWA INDUSTRIES Statement of Earnings Net sales Cost of sales Gross profit For the Year Ended December 31, 2020 $1,900,000 980,000 920,000 Operating expenses Depreciation expense property, plant and equipment 200,000 Amortization expense patents Other operating expenses Earnings from operating activities 27,000 197,000 496,000 Non-operating activities Interest expense Loss on sale of land Net earnings before income tax Income tax (30%) Net Earnings 160,000 100,000 236,000 70,800 $ 165.200 NIAKWA INDUSTRIES Comparative Statement of Financial Position December 31, 2020 2020 Assets Current Assets 2019 $ 200,000 $ 405,200 180,000 460,000 Cash Accounts Receivable 350,000 320,000 Investments Inventory Total Current Assets 2,336,000 3,381,200 2.090,000 2,960,000 Non-Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Patents, net Total Non-Current Assets Total Assets 880,000 (760,000) 192,000 312,000 $3.693.200 800,000 (560,000) 219,000 459,000 $3.419.000 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Accrued Payables Dividends Payable Income Taxes Payable $ 389,000 160,000 80,000 27,000 656,000 $ 265,000 240,000 80,000 42.000 627,000 Total Current Liabilities Non-Current Liabilities 180,000 900.000 Note Payable (Long-Term) 560,000 Bonds Pavable 400.000 Additional information: 1. Equipment was purchased for $400,000 cash in 2020. 2. Cash dividends of $40,000 were paid in 2020. 3. Land was sold for $220,000 cash in 2020. 4. Changes in the note payable and bonds payable accounts were through cash transactions. 5. Any additional transactions were non-cash transactions and can be ignored for this question. Required: Prepare a complete Statement of Cash Flows for 2020 using the indirect method for the operating section. Ignore supplementary disclosure.

Answer rating: 100% (QA)

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