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$1.$ Prepare the Kachina Sports Company statement of cash flows for the year ended December $31,2020.$ Use the indirect method. Prepare the Kachina Sports Company statement of cash flows tor the year ended December $31,2020.$ Use the indirectmethod.

a$.$ Enter amounts in the yellow cells.

b$.$ Use a minus sign tor any cash outtlows.

a$.$ Enter amounts in the yellow cells.

b$.$ Use a minus sign for any cash outflows.

KACHINA SPORTS COMPANY

Adjusted Trial Balance

$2020/12/31$

Balance

Account Title Debit Credit

Cash $$95,700$

Accounts Receivable $$12,000$

Inventory $$4,400$

Office Equipment $$26,000$

Truck $$18,000$

Accumulated Depreciation$$Plant Assets $$6,000$

Accounts Payable $$5,500$

Note Payable$$Short Term $$10,000$

Note Payable$$Long Term $$33,000$

Common Stock $$100,000$

Retained Earnings

Dividends $$1,000$

Sales Revenue $$15,000$

Cost of Goods Sold $$3,600$

Rent Expense $$2,000$

Advertising Expense $$800$

Depreciation Expense $$6,000$

$$169,500$ $$169,500$

Transaction data for $2020$

Cash paid for purchase of office equipment $$6,000$

Cash paid for purchase of truck $$5,000$

Acquisition of plant assets with a long$-$term notes payable $$33,000$

Cash payment of dividends $$1,000$

Cash receipt from issuance of common stock $$100,000$

KACHINA SPORTS COMPANY

Statement of Cash Flows

Year Ended December $31,2020$

Cash Flows from Operating Activities:

Net Income $$2,600$ Correct

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities

Depreciation Expense $-$ Plant Assets $$6,000$ Correct

Increase in Accounts Receivable Incorrect

Increase in Inventory Incorrect

Increase in Accounts Payable $$5,500$ Correct

Increase in Notes Payable$$Short$-$term $$10,000$ Correct

Net Cash Provided by Operating Activities $$24,100$ Incorrect

Cash Flows from Investing Activities:

Cash Paid for Acquisition of Plant Assets Incorrect

Net Cash Used for Investing Activities $$0$ Incorrect

Cash Flows from Financing Activities:

Cash Receipt from Issuance of Common Stock $$100,000$ Correct

Cash Payment of Dividends $($$$1,000)$ Correct

Net Cash Provided by Financing Activities $$99,000$ Correct

Net Increase $($Decrease$)$ in Cash: $$123,100$ Incorrect

Non$-$cash Investing and Financing Activities:

Acquisition of Plant Assets with Long$-$Term Notes Payable Incorrect

Total Non$-$cash Investing and Financing Activities $$0$ IncorrectPrepare the Kachina Sports Company statement of cash flows for the year ended December $31,2020.$ Use the indirect method.

a$.$ Enter amounts in the yellow cells.

b$.$ Use a minus sign for any cash outflows.Prepare the Kachina Sports Company statement of cash flows tor the year ended December $31,2020.$ Use the indirectmethod.

a$.$ Enter amounts in the yellow cells.

b$.$ Use a minus sign tor any cash outtlows.

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