Beniers, Inc. had the following balance sheet at December 31, 2019.
Beniers, Inc.
Balance Sheet
December 31, 2019
Assets Liabilities and Stockholders’ Equity
Cash $ 20,000 Accounts payable $ 30,000
Accounts receivable 21,200 Notes payable (long-term) 41,000
Investments 32,000 Common stock 100,000
Plant assets (net) 81,000 Retained earnings 23,200
Land 40,000 $ 194,200
$ 194,200
During 2020, the following occurred.
1. Beniers Inc. sold part of its debt investment portfolio for $15,000. This transaction resulted in a
gain of $3,400 for the firm. The company classifies its investments as available-for-sale.
2. A tract of land was purchased for $13,000 cash.
3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying
$16,000 cash.
4. An additional $20,000 in common stock was issued at par.
5. Dividends of $8,200 were declared and paid to stockholders.
6. Net income for 2020 was $32,000 after allowing for depreciation of $11,000.
7. Land was purchased through the issuance of $45,000 in bonds.
8. At December 31, 2020, Cash was $37,000, Accounts Receivable was $41,600, and Accounts
Payable remained at $30,000.
Instructions
(a) Prepare a statement of cash flows in proper format for 2020.
50 points maximum
BENIERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Noncash investing and financing activities