Statement of Cash Flows Angelas Cleaning Consortium SeymourJ

	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.

Solution

Cash flow statement using Indirect Method For the year ended December 31,2020 Cash flow from Operarting activities Net Income $62,700.00 Adjustments to Net Income Depreciation $25,000.00 Gain on disposal of plant assets -$12,000.00 Changes in working capital Decrease in Accounts Receivables $18,000.00 Increase in Inventory -$7,000.00 Decrease in Accounts Payable -$31,000.00 Decrease in accrued liabilities -$30,000.00 -$37,000.00 Net Cash available from Operating activities $25,700.00 Cash flow from Investing activities Sale of plant assets $79,500.00 Purchase of plant assets -$278,000.00 Sale of investment in Walking Dead Co $50,000.00 Net cash used for Investing activities -$148,500.00 Cash flow from financing activities Issue of notes payable $70,000.00 Issue of common stock $120,000.00 Purchase of Treasury stock -$50,000.00 Dividend paid -$12,700.00 Net Cash available from Financing activities $127,300.00 Net cash surplus / (deficit) $4,500.00 Add : Cash balance as on 2019 $62,000.00 Ending Cash balance as on 2020 $66,500.00