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Comparative balance sheets for Metlock, Inc. are presented as follows.
| Metlock, Inc. Comparative Balance Sheets December 31 |
| Assets | | 2020 | | 2019 |
| Cash | | $73,650 | | | $21,250 | |
| Accounts receivable | | 85,050 | | | 75,600 | |
| Inventory | | 179,350 | | | 188,400 | |
| Land | | 74,450 | | | 100,000 | |
| Equipment | | 249,200 | | | 199,600 | |
| Accumulated depreciationequipment | | (65,050 | ) | | (41,350 | ) |
| Total | | $596,650 | | | $543,500 | |
| Liabilities and Stockholders Equity | | | | | | |
| Accounts payable | | $33,250 | | | $46,150 | |
| Bonds payable | | 149,900 | | | 199,400 | |
| Common stock ($1 par) | | 213,500 | | | 164,000 | |
| Retained earnings | | 200,000 | | | 133,950 | |
| Total | | $596,650 | | | $543,500 | |
Additional information:
| 1. | | Net income for 2020 was $134,500. |
| 2. | | Cash dividends of $68,450 were declared and paid. |
| 3. | | Bonds payable amounting to $49,500 were redeemed for cash $49,500. |
| 4. | | Common stock was issued for $49,500 cash. |
| 5. | | Depreciation expense was $23,700. |
| 6. | | Sales revenue for the year was $976,800. |
| 7. | | Land was sold at cost, and equipment was purchased for cash. |
Prepare a worksheet for a statement of cash flows for 2020 using the indirect method. Enter the reconciling items directly on the worksheet.
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