Norman, Inc. has the following partial comparative balance sheet data for the years 2019 and 2020: December 31, 2020December 31, 2019
Cash$173,000$210,000
Accounts Receivable93,000111,000
Inventories105,00086,000
Equipment490,000240,000
Accumulated depreciation-equipment (51,000)(130,000)
Accounts Payable90,000120,000
Dividends Payable9,00049,000
Common Stock, $1 par27,0001,000
Paid in capital, excess of price over par-Common stock154,00097,000 Additional 2020 data:.
i) Full year 2020 Depreciation Expense was $51,000.
ii) Old equipment (asset) was disposed of (sold) for $150,000 cash. This equipment had accumulated depreciation of $130,000 at the time of sale.
iii) New equipment (asset) was acquired on January 1, 2020 for $490,000 cash.
iv) Full year 2020 Net Income was $280,000.
v) In the year 2020 Cash Dividends paid were $40,000.
vi) Common Stock was issued for cash.
Instructions:
• Prepare a full Statement of Cash flows using the Indirect Method of presenting Cash Flows from Operating Activities (show Operating, Investing, and Financing activities) (use format Exhibit 7, text pg. 622).