During 2020 , the following transactions occurred: 1. Purchased equipment for $19,400 cash. 2. Sold...
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During 2020 , the following transactions occurred: 1. Purchased equipment for $19,400 cash. 2. Sold the investment on January 1,2020 , for $30,800, resulting in investment income of $12,520. 3. Sold equipment for $6,820 cash that had originally cost $31,920 and had $20,180 of accumulated depreciation. 4. Issued $26,000 of bonds payable at face value. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise. e. Other operating expenses are cash expenses. f. Income taxes are cash expenses. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.)
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