Question

Question 12 The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $57,000 $49,000 Accounts receivable 42,400 64,000 Inventory 150,000 146,800 Prepaid expenses 14,300 21,600 Land 98,900 130,800 Buildings 198,400 198,400 Accumulated depreciation—buildings (60,800 ) (33,100 ) Equipment 229,000 156,400 Accumulated depreciation—equipment (42,800 ) (37,500 )    Total $686,400 $696,400 Liabilities and Stockholders’ Equity Accounts payable $46,400 $39,200 Bonds payable 260,000 293,100 Common stock, $1 par 190,800 157,700 Retained earnings 189,200 206,400    Total $686,400 $696,400 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $7,300. 2. Land was sold for cash at book value. 3. Cash dividends of $62,000 were paid. 4. Net income for 2020 was $44,800. 5. Equipment was purchased for $94,400 cash. In addition, equipment costing $21,800 with a book value of $12,800 was sold for $6,200 cash. 6. Bonds were converted at face value by issuing 33,100 shares of $1 par value common stock. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1