Question

Mail - Rumbelow, Chp 5 Homework Sarasota Corp.rep... Get Homework Hel. Preparing Business Course Return to course Question 9 Not yet answered Marked out of 5.00 P Flag question Indirect Method - Preparing a Statement of Cash Flows Kidman Corp. reported the following financial statements for the year ended December 31, 2020. Balance Sheet, December 31 2019 2020 Difference Cash and cash equivalents $43,200 $111,600 $68,400 Accounts receivable 34,200 27,000 (7.200) Merchandise inventory 55,800 106.200 50,400 Land 36.000 7,200 (28.800) Equipment 86,400 129,600 43,200 Accumulated depreciation (21,600) (43.200) (21,600) Total assets $234,000 $338,400 $104.400 Accounts payable $28.800 $32,400 $3,600 Notes payable, long-term 12,600 3.600 (9.000) Bonds payable 54,000 54,000 Common stock no par) 144,000 165,600 21,600 Retained earrings 48,600 82,800 34,200 Total abilities and stockholders' equity $234,000 $338.400 $104,400 Income Statement For Year Ended December 31, 2020 Revenues 5273,600 Cost of goods solid 147.600 Depreciation 21.600 25.200 on sale of land 18.000 161.200 Required Prepare the statement of cash flows for Kidman Corp. for the year ended December 31, 2020, using the indirect met Statement of Cash Flows For the Year Ended December 31, 2020 esc 80 888 S 2 3 & 5 6

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Answer 1

Page 1 For the year 6) Depreciation Expense 21600 CA Net $ 61,200 Required a statement of cash flows (indirect method) Statement of cash flows. Ended December 31, 2020. A. cash flows from operating activities :- a) net income $ 61,200 Adjustments ) c) loss on sale of land 18000 d) Decrease in accounts Receivable 7200 e) increase in merchandise inventory (50400 f) increase in accounts payable 3600 cash provided by Operating activities ca tof) CASH Flows from investing activities 9) sale of land [WN (1) 10800 4) purchase of equipment (43200) 6. Met cash used by investing Activities (gth) $ (32400) Cash flows from financing Activities :) long term note issuance (9000) ;) issuance of payable 54000 Issuance of common stock L) WN (2) Cash paid for dividends (27,000) @ cash provided by financing activities (ito L) $ 39,600 in Met cash in cash and cash equivalents during 2020. . $ 68,400 CA+B+C) cash and cash equivalents. Janualy 1, 2000. $ 43,200 payment on bond 21600 Net of cash and cash equivalents. December 31, 2020 (onth) 2. $ 111,600 Note:- Negaline values are indicated with brackets.
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