Reference no: EM132668036
Question - The comparative balance sheet for 2020 and 2019 for Jackson Corporation as well as additional information concerning transactions and events during 2020 are presented below:
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Jackson Corporation Balance Sheet December 31, 2020 and 2019
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2020
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2019
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Cash
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$35,900
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$10,200
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Accounts receivable (net)
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48,300
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20,300
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Inventory
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35,000
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42,000
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Long-term investments
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0
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15,000
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Property, plant & equipment
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236,500
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150,000
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Accumulated depreciation
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(37,700)
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(25,000)
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$318,000
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$212,500
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Accounts payable
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$19,000
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$26,500
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Accrued liabilities
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19,000
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17,000
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Long-term notes payable
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70,000
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50,000
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Common stock
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130,000
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90,000
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Retained earnings
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80,000
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29,000
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$318,000
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$212,500
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Additional data -
(a) Net income for the year 2020 was $90,000.
(b) Depreciation on plant assets for the year was $12,700.
(c) Sold the long-term investments for $33,000 (at a gain of $18,000).
(d) Paid dividends of $39,000.
(e) Purchased machinery costing $26,500 and paid cash.
(f) Purchased machinery and gave a $60,000 long-term note payable.
(g) Paid a $40,000 long-term note payable by issuing common stock.
Required - Using the indirect method, create a statement of cash flows for 2020 for Jackson Corporation.