The following information is taken from Smith Corporation'sfinancial statements:
December 31
2020 2019
Cash | $100,000 | $ 27,000 |
Accounts receivable | 95,000 | 80,000 |
Allowance for doubtful accounts | (4,500) | (3,100) |
Inventory | 145,000 | 175,000 |
Prepaid expenses | 7,500 | 6,800 |
Land | 100,000 | 60,000 |
Buildings | 287,000 | 244,000 |
Accumulated depreciation | (35,000) | (13,000) |
Patents | 20,000 ———————— $715,000 | 35,000 ———————— $611,700 |
Accounts payable | $ 90,000 | $ 84,000 |
Accrued liabilities | 54,000 | 63,000 |
Bonds payable | 135,000 | 60,000 |
Common stock | 100,000 | 100,000 |
Retained earnings——appropriated | 80,000 | 10,000 |
Retained earnings——unappropriated | 271,000 | 302,700 |
Treasury stock, at cost | (15,000) ---——— $715,000 | (8,000) -———— $611,700 |
For 2020 Year
—————————————
Netincome $63,300
Depreciationexpense 22,000
Amortization ofpatents 5,000
Cash dividends declared and paid 25,000
Gain or loss on sale ofpatents none
INSTRUCTIONS
Prepare a statement of cash flows for Smith Corporation for theyear 2020. (Use the indirect method.)
