Question

The following information is available for Sally Corporation for the year ended December 31, 2020:

Collection of principal on long-term loan to a supplier   $15,000  
Acquisition of equipment for cash   10,000  
Proceeds from the sale of long-term investment at book value   20,000  
Issuance of common stock for cash   27,000  
Depreciation expense   28,000  
Redemption of bonds payable at carrying (book) value   35,000  
Payment of cash dividends   15,000  
Net income   25,000  
Purchase of land by issuing bonds payable   45,000  


In addition, the following information is available from the comparative balance sheet for Sally at the end of 2019 and 2020:

    2020   2019
Cash   $66,000   $14,000
Accounts receivable (net)   20,000   16,000
Prepaid insurance   18,000   13,000
Total current assets   $104,000   $43,000
         
Accounts payable   $30,000   $20,000
Salaries payable   3,000   7,000
Total current liabilities   $33,000   $27,000


Prepare Sally's statement of cash flows for the year ended December 31, 2020 using the indirect method

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Cash Flow Statements

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