Use the Income Statement, Comparative Balance
	Sheets, & Additional Information to prepare the
	Statement of Cash Flows.
	DRUM INC.
	Income Statement
	For Year Ended Dec 31, 2020
	Sales		$445,000
	Cost of Goods Sold		168,000
	Gross Margin		$277,000
	Operating Expenses		96,000
	Depreciation Expense		29,000
	Operating Income		$152,000
	Interest Expense		(2,000)
	Gain on Sale of Equipment		5,000
	Loss on Sale of Long-Term Investments		(4,000)
	Income before Taxes		$151,000
	Income Tax Expense		48,000
	Net Income		$103,000
	DRUM Inc.
	Comparative Balance Sheets
	Dec 31, 2020 & 2019
		2020	2019
	Assets
	Current Assets:
	Cash	$85,000	$34,000
	Accounts Receivable	25,000	28,000
	Merchandise Inventory	83,000	65,000
	Prepaid Expenses	1,000	5,000
	Long-Term Assets:
	Equipment	245,000	221,000
	Accumulated Depr-Equipment	(70,000)	(61,000)
	Long-Term Investments	18,000	31,000
	Total Assets	$387,000	$323,000
	Liabilities & Equity
	Current Liabilities:
	Accounts Payable	$20,000	$30,000
	Income Tax Payable	7,000	6,000
	Long-Term Liabilities:
	Notes Payable	4,000	20,000
	Equity:
	Common Stock	225,000	217,000
	Retained Earnings	131,000	50,000
	Total Liabilities & Equity	$387,000	$323,000
	Additional Information:
	1. Sold equipment with a cost of $23,000, yielding
	a $5,000 gain.
	2. Purchased equipment for $47,000 cash.
	3. Sold long-term investments for $9,000 cash,
	which had an original cost of $13,000.
	4. Paid $16,000 cash for the principal amount
	on Notes Payable.
	5. Issued common stock for $8,000 cash.
	6. Declared and paid $22,000 in cash dividends.

	DRUM INC.
	Statement of Cash Flows (Indirect Method)
	For Year Ended Dec 31, 2020
	Cash Flow from Operating Activities:
	Net Cash Provided/Used by Operating Activ
	Cash Flow from Investing Activities:
	Net Cash Provided/Used by Investing Activ
	Cash Flow from Financing Activities:
	Net Cash Provided/Used by Financing Activ				$0
	Net Increase/Decrease in Cash				($10,000)
	Net Increase/Decrease in Cash
	Cash Balance at Prior Year (PY)
	Cash Balance at Current Year (CY)