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A comparative statement of financial position for Sheffield Industries Inc. follows: ...

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Accounting

A comparative statement of financial position for Sheffield Industries Inc. follows:

SHEFFIELD INDUSTRIES INC. Statement of Financial Position December 31, 2020
December 31
Assets 2020 2019
Cash $22,500 $35,500
Accounts receivable 117,000 55,300
Inventory 231,000 199,000
Land 86,000 130,000
Equipment 278,000 204,000
Accumulated depreciationequipment (70,500 ) (42,900 )
Total $664,000 $580,900
Liabilities and Shareholders Equity
Accounts payable $52,700 $60,200
Bonds payable 164,400 218,400
Common shares 234,000 180,000
Retained earnings 212,900 122,300
Total $664,000 $580,900

Additional information:

1. Net income for the fiscal year ending December 31, 2020, was $142,000.
2. Cash dividends of $51,400 were declared and paid. Dividends paid are treated as financing activities.
3. Bonds payable amounting to $54,000 were retired through issuance of common shares.
4. Land was sold at a gain of $3,000.
5. No equipment was sold during the year.

(a) Prepare a statement of cash flows using the indirect method.

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