Question 10 The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY Comparative...

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	Rothlisberger Company
	Statement of cash flow
	for the year ending dec 31,2020

Cash from operating activities
net income for the year			45,400
Adjustments to reconcile net income to
net cash from operating activities
Depreciation expense		42,000
loss on sale		7,700
Decrease in accounts receivable		21600
increase in inventory		-7500
decrease in prepaid expense		8000
increase in accounts payable		7000
			78,800
Net cash flow from operating activities			124,200
Cash from investing activities
cash from land sale		32400
cash from equipment sale		5,100
cash used to purchase equipment		-95,600
Net cash used by investing activities			-58,100
Cash from financing activities
Cash dividend paid			-57,600
net decrease in cash			8,500
cash at beginning of year			49,600
cash at year end			58,100

Non cash flow item
bonds converted to common stock			32,600

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ROTHLISBERGER COMPANY Comparative Balance Sheets December 31
Assets	2020		2019
Cash	$58,100		$49,600
Accounts receivable	43,500		65,100
Inventory	152,000		144,500
Prepaid expenses	14,500		22,500
Land	101,600		134,000
Buildings	196,700		196,700
Accumulated depreciation—buildings	(56,800	)	(32,600	)
Equipment	231,700		157,600
Accumulated depreciation—equipment	(44,300	)	(35,200	)
Total	$697,000		$702,200
Liabilities and Stockholders’ Equity
Accounts payable	$46,300		$39,300
Bonds payable	260,000		292,600
Common stock, $1 par	192,600		160,000
Retained earnings	198,100		210,300
Total	$697,000		$702,200

1.		Operating expenses include depreciation expense of $42,000 andcharges from prepaid expenses of $8,000.
2.		Land was sold for cash at book value.
3.		Cash dividends of $57,600 were paid.
4.		Net income for 2020 was $45,400.
5.		Equipment was purchased for $95,600 cash. In addition,equipment costing $21,500 with a book value of $12,800 was sold for$5,100 cash.
6.		Bonds were converted at face value by issuing 32,600 shares of$1 par value common stock.

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