Use the Global Filter Corp. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method.
Additional Information:
a. Purchased machinery for $43,000 cash
b. Sold the long-term investment on January 1, 2019 for $2,000.
c. Sold machinery for $14,500 cash that had originally cost $69,500 and had $46,000 of accumulated depreciation.
d. Issued $39,000 of bonds payable at face value.
Global Filter Corp
Comparative Balance Sheet information December 31 Assets 2019 2018 303,500 240,000 Cash 130,400 92,000 Accounts receivable 8,900 32,000 Merchandise inventory 0 21,000 Long-term investment in stock 263,500 290,000 Machinery Accumulated depreciation, machinery (129,000) (150,000) 577,300 525,000 Total assets
Liabilities and Stockholders' Equity Accounts payable Cash dividends payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity
35,300 24,000 39,000 281,000 198,000 577,300
59,000 41,000 0 281,000 144,000 525,000
Global Filter Corp Income Statement
For Year Ended December 31, 2019
Sales Cost of goods sold Depreciation expense Other expenses Loss on sale of long-term investment Loss on sale of machinery
800,000
650,000 25,000 43,000
(718,000 19,000) (9,000) 54,000
Net income