Prepare a statement of cash flows for calendar

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Reference no: EM133032426

Problem - Stand Corporation's calendar year-end 2020 and 2019 balance sheets showed the following items:

 

2020

2019

Cash

$29,200

$21,000

Accounts payable

38,000

49,000

Merchandise inventory

107,800

97,000

Equipment

112,000

89,000

Accumulated depreciation, equipment

25,000

16,000

Common shares

135,000

135,000

Retained earnings

119,000

97,000

Additional information:

a) The only decrease in accounts receivable were customer receipts.

b) No equipment was sold in the year.

c) Dividends were declared and paid in the year.

d) Profit was $60,000 for 2020.

Required - Prepare a statement of cash flows for calendar 2020 that follows the indirect method of calculating the net cash provided (or used) by operating activities.

Reference no: EM133032426

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