help Harold CorporationIncome StatementFor the Year Ended 31 December 2020$1,083,000RevenueCost of goods soldOperating expensesLoss on sale of equipmentТах еxpense585,000439,2002,1009,450Net income47,250Additional Informationa. Depreciation expenses in 2020 was $46,350.b. A company purchased an equipment costing $113,250 by cash.c. An equipment with an original cost of $51,000 (its book value was $30,150) was soldfor $28,050 cash.d. Paid $50,000 to settle a note payable.e. Signed a 10-year promissory note of $120,000 in exchange for building.f. A company received cash for all new shares issued in 2020.g. Dividends were declared and paid by cash.Instruction:Prepare the statement of cash flows for the year ended 31 December 2020, using the indirectmethod. The comparative balance sheets, income statement and additional information of HaroldCorporation are presented as follows.Harold CorporationBalance SheetAt 31 December20202019$AssetsCash56,50071,550Accounts Receivable74,10090,750Inventory519,000490,200Prepaid RentEquipmentAccumulated Depreciation – EquipmentBuildingAccumulated Depreciation - Building17,10019,200278,250(108,750)216,000(93,000)90,000(42,500)210,000(52,250)Total Assets993,950842,200Liabilities and Stockholders' EquityLiabilitiesAccounts PayableUnearned Revenue181,950123,45017,25011,250Notes Payable (long-term)242,500172,500Total Liabilities441,700307,200Stockholders' EquityCommon StockRetained Earnings483,000450,00069,25085,000Total Stockholders' Equity552,250535,500Total Liabilities and Stockholders' Equity993,950842,200

The cash flow statement can be defined as one of the most important form of financial statement. It…

Answered: Prepare the statement of cash flows for…

Business

Accounting

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

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