SHEFFIELD COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $74,000 $22,000 Accounts receivable 85,000 75,000 Inventory 168,000 190,000 Land 72,000 102,000 Equipment 261,000 202,000 Accumulated depreciation - equipment (67,000) (32,000) Total $593,000 $559,000 Liabilities and Stockholders' Equity Accounts payable $38,000 $48,000 Bonds payable 152,000 213,000 Common stock ($1 par) 219,000 175,000 Retained earnings 184,000 123,000 Total $593,000 $559,000 Additional information: 1. Net income for 2020 was $98,000. 2. Cash dividends of $37,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost. (a) Prepare a statement of cash flows for 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).)

SHEFFIELD COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $74,000 $22,000 Accounts receivable 85,000 75,000 Inventory 168,000 190,000 Land 72,000 102,000 Equipment 261,000 202,000 Accumulated depreciation - equipment (67,000) (32,000) Total $593,000 $559,000 Liabilities and Stockholders' Equity Accounts payable $38,000 $48,000 Bonds payable 152,000 213,000 Common stock ($1 par) 219,000 175,000 Retained earnings 184,000 123,000 Total $593,000 $559,000 Additional information: 1. Net income for 2020 was $98,000. 2. Cash dividends of $37,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $49,000 and had a book value of $24,000 was sold for $32,000 during 2020; land was sold at cost. (a) Prepare a statement of cash flows for 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).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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