Question

The following is a condensed version of the comparative balance sheets for Flounder Corporation for the last two years at December 31, 2020. 2020 Cash Accounts receivable Inventories Prepaid Expenses Investments Equipment Accumulated Depreciation Equipment Accounts Payable Accrued Expenses Bonds Payable Common stock Retained earnings 564,800 325,000 175,000 56,450 95,000 275,000 (172,550) 195,600 2019 $ 261,000 222,000 162,600 59,000 88,800 425,000 (250,000) 176,100 296,200 425,000 180,000 315,000 238,000 616,000 210,000 335,700 Additional information: Cash dividends paid were $48,000; and net i 16,000. Equipment was sold for a loss of $35,000, cash received was $17,550. Depreciation expense was 20,000. Prepare a statement of cash flows for 2020 the Flounder Corporation. (Use proper title, neatness is important.) RSS

Answer 1

$ 216,000 Flounder Corporation Statement of Cash Flows For the Year Ended December 31, 2020 Cash flow from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense $ Loss on sale of equipment $ Increase in accounts receivable $ Increase in inventories $ Decrease in prepaid expenses $ Increase in accounts payable $ Decrease in accrued expenses $ Net cash provided by operating activities Cash flow from investing activities: Proceed from sale of equipment $ Purchase of investments $ Net cash used by investing activities Cash flow from financing activities: Payment of cash dividends Proceed from issue of bonds payable $ Proceed from issue of common stock $ Net cash used by financing activities Net increase in cash Cash balance at the beginning of the year Cash balance at the end of the year 20,000 35,000 103,000 -12,400 2,550 19,500 -58,200 $ $ -96,550 119,450 17,550 -6,200 $ 11,350 -48,000 191,000 30,000 $ $ $ $ 173,000 303,800 261,000 564,800