In: Accounting
Answer:
Statement of
Cash Flows For the Year Ended December 31, 2020 |
|||
Cash Flows from Operating Activities: | |||
Net income | 27,000 | ||
Adjustments to reconcile net income to: | |||
Depreciation expense | 24,540 | =35200-(24800-20200*70%) | |
Gain on Sale of Equipment | -2000 | ||
Decrease in inventories | 19100 | ||
Increase in Accounts receivable | -10500 | ||
Increase in accounts payable | 6000 | ||
Increase in salaries and wages payable | 2100 | ||
39200 | |||
Net cash provided by operating activities | 66,200 | ||
Cash Flows from Investing Activities: | |||
Purchase of Equipment | -45500 | =(129900-20200)-155200 | |
Purchase of Land | -12,900 | ||
Sale of Equipment | 8060 | =(6,060)+2000 | |
Net Cash Used by Investing Activities | -50,340 | ||
Cash Flows from Financing Activities | |||
Dividend declared and paid | -6,160 | ||
Principal payment on Long-term notes payable | -10,700 | =68,100 - 78,800 | |
Net Cash Used by Financing Activities | -16,860 | ||
Net Decrease in Cash | -1000 | ||
Cash at Beginning of Period | 7100 | ||
Cash at End of Period | 6100 |