Question

Below is the comparative balance sheet for Larkspur Corporation.

		Dec. 31, 2020			Dec. 31, 2019
Cash		$16,400			$21,100
Short-term investments		25,200			19,100
Accounts receivable		43,400			45,100
Allowance for doubtful accounts		(1,900	)		(2,000	)
Prepaid expenses		4,300			2,400
Inventory		82,200			65,200
Land		50,100			50,100
Buildings		125,100			73,600
Accumulated depreciation—buildings		(29,700	)		(23,000	)
Equipment		52,600			45,900
Accumulated depreciation—equipment		(19,100	)		(15,300	)
Delivery equipment		39,400			39,400
Accumulated depreciation—delivery equipment		(22,200	)		(20,700	)
Patents		14,900			–0–
		$380,700			$300,900
Accounts payable		$26,000			$16,000
Short-term notes payable (trade)		4,000			5,900
Accrued payables		3,000			4,700
Mortgage payable		72,600			52,800
Bonds payable		50,200			61,900
Common stock		140,500			101,200
Paid-in capital in excess of par		10,000			4,100
Retained earnings		74,400			54,300
		$380,700			$300,900

Dividends in the amount of $15,100 were declared and paid in 2020.

From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. The short-term investments are considered available-for-sale and no unrealized gains or losses have occurred on these securities.

Answer 1

Solution:

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