Question

Tamarisk Inc. had the following balance sheet at December 31, 2019. TAMARISK INC. BALANCE SHEET DECEMBER 31, 2019 Cash $20,990 Accounts payable $30,990 Accounts receivable 22,190 Notes payable (long-term) 41,990 Investments 32,990 Common stock 100,990 Plant assets (net) 81,000 Retained earnings 24,190 Land 40,990 $198,160 $198,160 During 2020, the following occurred. 1. Tamarisk Inc. sold part of its debt investment portfolio for $15,071. This transaction resulted in a gain of $3,471 for the firm. The company classifies these investments as available-for-sale. 2. A tract of land was purchased for $13,990 cash. 3. Long-term notes payable in the amount of $16,071 were retired before maturity by paying $16,071 cash. 4. An additional $20,071 in common stock was issued at par. 5. Dividends of $8,271 were declared and paid to stockholders. 6. Net income for 2020 was $32,990 after allowing for depreciation of $11,071. 7. Land was purchased through the issuance of $35,990 in bonds. 8. At December 31, 2020, Cash was $37,990, Accounts Receivable was $42,590, and Accounts Payable remained at $30,990. Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1