70.2K

Verified Solution

Link Copied!

Please show steps

Sketchers Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $25,600 $108,800 Accounts receivable (net) 32,000 57,600 Inventory 64,000 76,800 Investment, long-term 12,800 Plant assets 192,000 300,800 Accumulated depreciation (32,000) (44,800) Total assets $294,400 $499,200 Liabilities and Stockholders' Equity Accounts payable $19,200 $32,000 Notes payable, short-term (nontrade) 25,600 19,200 Notes payable, long-term 64,000 115,200 Common stock, no-par 160,000 256,000 Retained earnings 25,600 76,800 Total liabilities andstockholders' equity $294,400 $499,200 Income Statement, For Year Ended December 31 2020 Sales revenue Cost of goods sold Gross margin Depreciation expense Other operating expenses Net income $960,000 (576,000) 384,000 (12,800) (204,800) $166,400 Additional Information 1. Sold the long-term investment at cost, for cash. 2. Declared and paid a cash dividend of $44,800. 3. Purchased plant assets that cost $108,800; gave a $76,800 long-term note payable and paid $32,000 cash. 4. Paid a $25,600 long-term note payable by issuing common stock; market value, $25,600. 5. Issued a stock dividend, $70,400. Required Prepare the statement of cash flows for Sketchers Corporation for the year ended December 31, 2020, assuming the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income 0 Adjustments: 0 Increase accounts receivable, net 0 Increase inventory 0 Increase accounts payable 0 Net cash provided (used) by operating activities 0 Cash flows from investing activities Sale of long term investment 0 0 Net cash provided (used) by investing activities 0 Cash flows from financing activities 0 Cash paid for dividends Net cash provided (used) by financing activities Net increase in cash and cash equivalents during 2020 0 Cash and cash equivalents, January 1, 2020 0 Cash and cash equivalents, December 31, 2020 $ 0 Noncash Disclosure Exchanged plant assets for long-term note $ 0 Issuance of common stock for long term note payment $ 0 0 0

Answer & Explanation Solved by verified expert

See Answer