Answer:
Bonita Corporation
Statement of Cash Flows for the year ended December 31, 2020:
Operating Activities:
Net income $272,000
add loss from sale of investment 17,000
add Depreciation expense 28,900
Changes in working capital:
Accounts receivable $8,500
Current liabilities -28,900
Net cash from operations $297,500
Investing Activities:
Sale of investments $20,400
Purchase of equipment -98,600
Net cash from investing -$78,200
Financing Activities:
Payment of dividends -$51,000
Net cash flows $168,300
Explanation:
a) Data and Calculations:
Comparative Balance Sheets
2020 2019 Changes
Cash $ 300,900 $ 132,600 +$168,300
Accounts receivable 306,000 314,500 -$8,500
Investments 88,400 125,800 -$37,400
Equipment 506,600 408,000 +$98,600
Accumulated Depreciation
-Equipment (180,200 ) (151,300 ) +(28,900)
Current liabilities 227,800 256,700 -$28,900
Common stock 272,000 272,000 0
Retained earnings 521,900 300,900
Additional Information
Loss from sale of investment = $17,000
Net income = $272,000
Dividends = $51,000
Cash Beginning Balance $132,600
Net cash flows $168,300
Cash, Ending balance $ 300,900
