Here are comparative balance sheets for Velo Company.
Velo Company
Comparative Balance Sheets
December 31 |
Assets | | 2020 | | 2019 |
| Cash | | $73,400 | | | $33,100 | |
| Accounts receivable | | 85,800 | | | 71,200 | |
| Inventory | | 170,200 | | | 187,000 | |
| Land | | 72,800 | | | 101,000 | |
| Equipment | | 260,600 | | | 200,800 | |
| Accumulated depreciation—equipment | | (66,100 | ) | | (33,900 | ) |
| Total | | $596,700 | | | $559,200 | |
Liabilities and Stockholders’ Equity | | | | | | |
| Accounts payable | | $35,000 | | | $47,500 | |
| Bonds payable | | 151,400 | | | 203,400 | |
| Common stock ($1 par) | | 217,600 | | | 174,100 | |
| Retained earnings | | 192,700 | | | 134,200 | |
| Total | | $596,700 | | | $559,200 | |
Additional information:
| 1. | | Net income for 2020 was $103,600. |
| 2. | | Cash dividends of $45,100 were declared and paid. |
| 3. | | Bonds payable amounting to $52,000 were redeemed for cash$52,000. |
| 4. | | Common stock was issued for $43,500 cash. |
| 5. | | No equipment was sold during 2020, but land was sold atcost. |
Prepare a statement of cash flows for 2020 using the indirectmethod. (Show amounts that decrease cash flow witheither a - sign e.g. -15,000, or in parenthesis e.g.(15,000).)
Velo Company
Statement of Cash Flows |
