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OAKLEY COMPANY Worksheet-Statement of Cash Flows For the Year Ended December 31, 2020 Balance Reconciling Items nts 12/31/19 Debit Credit Debits Credits Accumulated Depreciation-Equipment Accounts Payable Accrued Expenses Payable Bonds Payable Common Stock Retained Earnings Totals Statement of Cash Flow Effects Cash Flows from Operating Activities Net Income Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Accrued Expenses Payable Depreciation Expense Gain on Disposal of Plant Assets Cash Flows from Investing Activities Sale of Investments Sale of Plant Assets Purchase of Plant Assets Decrease in Accrued Expenses Payable V Depreciation Expense Gain on Disposal of Plant Assets Cash Flows from Investing Activities Sale of Investments Sale of Plant Assets Purchase of Plant Assets Cash Flows from Financing Activities Issuance of Common Stock Issuance of Bonds Payment of Dividends Totals Net Increase in Cash Oakley Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Investments Equipment Accumulated depreciation-equipment $83,200 90,300 125,700 85,000 253,000 (48,500) $588,700 $47,100 58,000 101,500 87,000 205,000 (39,000) $459,600 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $57,100 11,900 100,000 249,000 170,700 $588,700 $47,800 18,600 71,000 196,000 126,200 $459,600 Oakley Company Income Statement For the Year Ended December 31, 2020 Sales revenue Gain on disposal of plant assets $297,700 8,100 305,800 Less: Cost of goods sold Operating expenses (excluding depreciation expense) Depreciation expense Income tax expense $101,200 14,000 49,200 6,600 3,000 Interest expense 174,000 Net income $131,800 Additional information: 1. 2. Equipment costing $105,000 was purchased for cash during the year. Investments were sold at cost. Equipment costing $57,000 was sold for $25,400, resulting in gain of $8,100. A cash dividend of $87,300 was declared and paid during the year. 3. 4

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