Prepare a statement of cash flows for year ending december

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Reference no: EM133234342

Financial statement information from the balance sheet and a list of additional data is provided below for Walnut Creek Saddlery and Western Wear.

 December 31

                                                           2019                           2020

Cash                                  $42,000                    $60,000

Accounts receivable (net) 25,400                    32,200

Inventory                             105,700                   87,920

Land                                     45,000 --

Equipment                            103,000                 85,600

Accumulated depreciation ( 41,600)                ( 40,200

TOTAL                                   $279,500              $225,520

 

Accounts payable                     $16,560              $ 11,810

Notes payable - long-term        70,000                  10,000

Common stock                          90,000              150,000

Retained earnings                     102,940              53,710  

TOTAL                            $279,500           $225,520

Additional data for 2020:

1. The company reported a net loss of $45,730.

2. Land was sold for a profit of $30,700.

3. Dividends of $3,500 were declared and paid.

4. Equipment costing $17,400 with accumulated depreciation of $11,400 was sold for $5,000 cash.

5. The long-term note was paid down with funds from selling additional common stock.

Instructions:

Prepare a statement of cash flows for the year ending December 31, 2020. Be sure to prepare the statement with proper format and correct heading and date.

Reference no: EM133234342

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