60.1K

Verified Solution

Link Copied!

Flint Inc had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land FLINT INC. BALANCE SHEET DECEMBER 31, 2019 $24,640 Accounts payable 25,840 Notes payable (long-term) 36,640 Common stock 81,000 Retained earnings 44,640 $212,760 $34,640 45,640 104,640 27,840 $212,760 During 2020, the following occurred. 1. 2. 3. 4. 5. 6. 7. Flint Inc. sold part of its debt investment portfolio for $18,399. This transaction resulted in a gain of $6,799 for the firm. The company classifies these investments as available-for-sale. Atract of land was purchased for $17,640 cash. Long-term notes payable in the amount of $19,399 were retired before maturity by paying $19,399 cash. An additional $23,399 in common stock was issued at par. Dividends of $11,599 were declared and paid to stockholders. Net income for 2020 was $36,640 after allowing for depreciation of $14,399. Land was purchased through the issuance of $39,640 in bonds. At December 31, 2020, Cash was $41,640, Accounts Receivable was $46,240, and Accounts Payable remained at $34,640. 8. (a) Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis eg. (15,000.) ALINT INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Actilvitles Net Income Adjustments to reconcile net income to Depreciation Expense Gain on Sale of Investments Increase in Account Receivable Net Cash Provided by Operating Activities Cash Flows from Investing Actvitles Sale of Investments Purchase of Land Net Cash Provided by Investing Actlvitles

Answer & Explanation Solved by verified expert

See Answer