Additional Information A Sold plant assets with a cost of 75

Additional Information:
	A. Sold plant assets with a cost of $75,000 and accumulated depreciation of $7,500,
	yielding a gain of disposal of plant assets of $12,000.
	B. Purchased plant assets by paying cash.
	C. Issued Notes Payable for Cash.
	D. Sold investment in Walking Dead Co at cost (zero gain/loss).
	E. Issued Common Stock for Cash.
	F. Purchased Treasury Stock for Cash.

	Requirements:
	Prepare, in good form, a Statement of Cash Flows using the indirect method.

Statement of Cash Flows
Angela\'s Cleaning Consortium		Seymour-Johnson, Inc.
Comparative Balance Sheet		Income Statement
December 31, 2020 and 2019		For the Year Ended December 31, 2020
	2020	2019	Net sales	$ 386,000
ASSETS			Cost of goods sold	(212,000)
Current assets			Gross profit	174,000
Cash	$ 66,500	$ 62,000	Operating expenses
Accounts receivable	95,000	113,000	Salaries and wages expense	(66,000)
Merchandise inventory	172,000	165,000	Depreciation expense	(25,000)
Total current assets	333,500	340,000	Other operating expenses	(28,000)
Long-term investments			Income from operations	55,000
Investment in Walking Dead Co.	-	50,000	Other revenues and gains
Property, buildings, and equipment	507,000	304,000	Interest revenue	15,000
Less: Accumulated depreciation	(59,500)	(42,000)	Dividend revenue	9,700
Total assets	$ 781,000	$ 652,000	Gain on disposal of plant assets	12,000
Liabilities and Stockholders\' Equity			Other expenses and losses
Current liabilities			Interest expense	(15,000)
Accounts payable	$ 144,000	$ 175,000	Income before income taxes	76,700
Accrued liabilities	17,000	47,000	Income tax expense	(14,000)
Total current assets	161,000	222,000	Net Income	$ 62,700
Long-term Liabilities
Notes payable, long-term	160,000	90,000
Total liabilities	321,000	312,000
Stockholders\' equity
Common stock	370,000	250,000
Retained earnings	140,000	90,000
Treasury stock	(50,000)	-
Total Stockholders’ Equity	460,000	340,000
Total Liabilities & Stockholders\' Equity	$ 781,000	$ 652,000

Additional Information:
	A. Sold plant assets with a cost of $75,000 and accumulated depreciation of $7,500,
	yielding a gain of disposal of plant assets of $12,000.
	B. Purchased plant assets by paying cash.
	C. Issued Notes Payable for Cash.
	D. Sold investment in Walking Dead Co at cost (zero gain/loss).
	E. Issued Common Stock for Cash.
	F. Purchased Treasury Stock for Cash.

	Requirements:
	Prepare, in good form, a Statement of Cash Flows using the indirect method.

Statement of cashflows Cashflow from operating activities: Net income 62700 Adjustments: Gain on disposal of plant assets -12000 Depreciation expense 25000 Decrease in accounts receivable (113000-95000) 18000 Increase in merchandise inventory (172000-165000) -7000 Decrease in accounts payable (175000-144000) -31000 Decrease in accrued liabilities (47000-17000) -30000 Cashflow from operating activities (A) 25700 Cashflow from investing activities: Sale of plant assets (75000-7500+12000) 79500 Purchase of plant assets (Note:1) -278000 Sale of investments 50000 Cashflow from investing activities (B) -148500 Cashflow from financing activities: Issued notes payable (160000-90000) 70000 Issue of common stock (370000-250000) 120000 Purchase of treasury stock -50000 Dividend paid (Note:2) -12700 Cashflow from financing activities © 127300 Net increase in cash (A)+(B)+© 4500 Add:Beginning balance of cash 62000 Ending balance of cash 66500 Note:1-Cost of palant purchased Analyze Property,Buildings and equipment Beginning balance 304000 Less: Plant sold 75000 229000 Less:Ending balance 507000 Asset purchased 278000 Note:2-Dividend paid Analysis of retained earnings account Beginning balance 90000 Add: Net income 62700 152700 Less:Ending balance 140000 Dividend paid 12700

Additional Information: A. Sold plant assets with a cost of $75,000 and accumulated depreciation of $7,500, yielding a gain of disposal of plant assets of $12,

Additional Information A Sold plant assets with a cost of 75

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