Please help me to solve this problem Comparative balance sheet accounts for Sharpe, Inc. at December 31, 2020 and 2019 arepresented below:Debit Balances2019202070,000Cash51,000Accounts Receivable155,000130,000Inventory75,00061,00055,00070,000Long-Term Investments85,000Equipment48,000Buildings145,000145,00025,000545.000Land40,000Total610.000Credit Balances20202019Allowance for Doubtful Accounts10,0008,000Accum. Depreciation- EquipmentAccum. Depreciation- Buildings14,00028,00021,00037,000Accounts Payable66,00060,000Income Taxes Payable12,00010,000Long-Term Notes Payable62,00070,000310,000260,000Common Stock92,000610,00095.000545,000Retained EarningsTotalSharpe's 2020 income statement is as follows:950,000Sales600,000350,000Cost of Goods SoldGross ProfitOperating Expenses(including depreciation)Income From OperationsOther Income(Expenses):250,000100,000Gain on Sale of Investments 15,000Loss on Sale of Equipment (3.000)12,000Income Before Taxes112,00045,000Income Taxes67.000Net IncomeCONTINUED ON NEXT PAGE Additional Information:1.Equipment that cost $10,000 and was 60% depreciated was sold in 2020.Cash dividends were declared and paid during 2020.Common stock was issued in exchange for land.2.3.Long-Term Investments that cost $35,000 were sold during 2020.There were no write-offs of uncollectible accounts during 2020.4.5.REQUIRED:Prepare Sharpe's statement of cash flows for 2020 using the indirect method.

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Comparative balance sheet accounts for Sharpe, Inc. at December 31, 2020 and 2019 are presented below: Debit Balances 2020 70,000 2019 51,000 Cash Accounts Receivable 155,000 130,000 Inventory 75,000 61,000 Long-Term Investments 55,000 85,000 70,000 145,000 40,000 610.000 48,000 Equipment Buildings 145,000 Land 25,000 Total 545.000 2020 10,000 2019 8,000 Credit Balances Allowance for Doubtful Accounts 14,000 Accum. Depreciation- Equipment Accum. Depreciation- Buildings 21,000 37,000 28,000 Accounts Payable 66,000 60,000 12,000 10,000 Income Taxes Payable Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 92,000 610,000 95.000 545.000 Retained Earnings Total Sharpe's 2020 income statement is as follows: Sales 950,000 Cost of Goods Sold 600,000 Gross Profit 350,000 Operating Expenses(including depreciation) Income From Operations Other Income(Expenses): 250,000 100,000 Gain on Sale of Investments 15,000 Loss on Sale of Equipment L3,000) 12,000 112,000 Income Before Taxes 45,000 Income Taxes 67.000 Net Income ONTINUED ON NEXT PAGE

Comparative balance sheet accounts for Sharpe, Inc. at December 31, 2020 and 2019 are presented below: Debit Balances 2020 70,000 2019 51,000 Cash Accounts Receivable 155,000 130,000 Inventory 75,000 61,000 Long-Term Investments 55,000 85,000 70,000 145,000 40,000 610.000 48,000 Equipment Buildings 145,000 Land 25,000 Total 545.000 2020 10,000 2019 8,000 Credit Balances Allowance for Doubtful Accounts 14,000 Accum. Depreciation- Equipment Accum. Depreciation- Buildings 21,000 37,000 28,000 Accounts Payable 66,000 60,000 12,000 10,000 Income Taxes Payable Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 92,000 610,000 95.000 545.000 Retained Earnings Total Sharpe's 2020 income statement is as follows: Sales 950,000 Cost of Goods Sold 600,000 Gross Profit 350,000 Operating Expenses(including depreciation) Income From Operations Other Income(Expenses): 250,000 100,000 Gain on Sale of Investments 15,000 Loss on Sale of Equipment L3,000) 12,000 112,000 Income Before Taxes 45,000 Income Taxes 67.000 Net Income ONTINUED ON NEXT PAGE

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...

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