Question

Condensed financial data of Concord Company for 2020 and 2019 are presented below.

CONCORD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
		2020			2019
Cash		$1,800			$1,130
Receivables		1,770			1,320
Inventory		1,560			1,890
Plant assets		1,900			1,700
Accumulated depreciation		(1,220	)		(1,180	)
Long-term investments (held-to-maturity)		1,300			1,430
		$7,110			$6,290
Accounts payable		$1,220			$890
Accrued liabilities		190			250
Bonds payable		1,410			1,520
Common stock		1,870			1,730
Retained earnings		2,420			1,900
		$7,110			$6,290

ONCORD COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue

$6,860

Cost of goods sold

4,710

Gross margin

2,150

Selling and administrative expenses

920

Income from operations

1,230

Other revenues and gains

   Gain on sale of investments

80

Income before tax

1,310

Income tax expense

530

Net income

780

Cash dividends

260

Income retained in business

$520

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the direct method.

Answer 1