statement ot Cash lows Angelas Cleaning Consortium Comparati

statement ot Cash lows Angela\'s Cleaning Consortium Comparative Balance Sheet December 31, 2020 and 2019 Seymour-Johnson, Inc. Income Statement For the Year Ended December 31, 2020 2020 2019 Net sales Cost of goods sold Gross profit ASSETS Current assets 174,000 Cash Accounts receivable Merchandise inventory S 66,500 $ 62,000 95,000 113.000 172,000 165,000 333,500 340,000 expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other revenues and gains 66,000 (25,000) Total current asset:s Investment in Walking Dead Co Less: Accumulated depreciation 55,000 Long-term investments Property, buildings, and e Total assets Current liabilities 507,000 304.000 nterest revenue Dividend revenue Gain on disposal of plant asset:s 15,000 9,700 nt 42,000) 781,000 $ 652,000 Liabilities and Stockholders Equit Other expenses and losses Interest expense Accounts Accrued liabilities Total current assets S 144,000$ 175,000 47,000 222,000 Income before income taxes Income tax expense Net Income 76,700 14,000) $ 62,700 able 17,000 161,0002 160,000 321,000 312.000 370,000 term Liabilities Notes payable, long-term 90,000 Total liabilities Stockholders\' e Common stock Retained earnings 250,000 90,000 140,000

Solution

Cash Flow Statement (Indirect Method):-

Cash flow from Operating Actvities:-

Net Income

62700

Adjustment to reconcile net income to net cash:-

Gain on sale of plant

-12000

Dividend Revenue

-9700

Interest Revenue

-15000

Depreciation Exp

25000

Decrease A/c receivable

18000

Increase Inventory

-7000

Decrease A/c payable

-31000

Decrease Accrued Liab

-30000

Cash flow from Operating Actvities (A)

1000

1000

Cash flow from Investing Actvities:-

Dividend Revenue

9700

Interest Revenue

15000

Plant sold (75000 – 7500 + 12000)

79500

Purchased plant asset (507000 – 304000 + 75000)

-278000

Sold investment in walking co.

50000

Cash flow from Investing Actvities (B)

-123800

-123800

Cash flow from Financing Actvities:-

Issue common stock

120000

Purchase Treasury stock

-50000

Issue Notes Payable

70000

Dividend Paid (90000 + 62700 – 140000)

-12700

Cash flow from Financing Actvities (C)

127300

127300

Total cash flow (A +B +C)

4500

(+) Beginning cash flow

62000

Ending cash flow

66500

Plant Asset A/c

To bal b/d

304000

By cash (sold)

79500

To cash (purchase)

278000

By acc Dep (asset sold)

7500

To gain on sale

12000

By bal c/d

507000

594000

594000

To bal b/d

507000

Accumulated Dep:-

To Plant Asset(sold)

7500

By bal b/d

42000

To bal c/d

59500

By Dep exp

25000

67000

67000

By bal b/d

59500

Retained Earnings:-

To Dividend Paid

12700

By bal b/d

90000

To bal c/d

140000

By Net Income

62700

152700

152700

By Bal b/d

140000

Journal Entry for sale of Plant:-

Cash A/c Dr                             79500

Accumulated Dep A/c Dr      7500

        To Plant Asset Cr                       75000

         To gain on plant sold Cr            12000

Cash flow from Operating Actvities:-
Net Income	62700
Adjustment to reconcile net income to net cash:-
Gain on sale of plant	-12000
Dividend Revenue	-9700
Interest Revenue	-15000
Depreciation Exp	25000
Decrease A/c receivable	18000
Increase Inventory	-7000
Decrease A/c payable	-31000
Decrease Accrued Liab	-30000
Cash flow from Operating Actvities (A)	1000	1000
Cash flow from Investing Actvities:-
Dividend Revenue	9700
Interest Revenue	15000
Plant sold (75000 – 7500 + 12000)	79500
Purchased plant asset (507000 – 304000 + 75000)	-278000
Sold investment in walking co.	50000
Cash flow from Investing Actvities (B)	-123800	-123800
Cash flow from Financing Actvities:-
Issue common stock	120000
Purchase Treasury stock	-50000
Issue Notes Payable	70000
Dividend Paid (90000 + 62700 – 140000)	-12700
Cash flow from Financing Actvities (C)	127300	127300
Total cash flow (A +B +C)		4500
(+) Beginning cash flow		62000
Ending cash flow		66500