From the following balance sheet information and other data, prepare a statement of cash flows for Brown Company, using the indirect method:
|
12/31/19A
|
12/31/19B
|
|
Cash
|
$ 1,800
|
$ 2,830
|
|
Accounts Receivable
|
3,050
|
2,950
|
|
Prepaid Insurance
|
4,310
|
5,490
|
|
Investment in Green Company (equity method)
|
600
|
730
|
|
Investment in Blue Company (cost method)
|
1,000
|
1,000
|
|
Land
|
2,000
|
3,500
|
|
Machinery
|
6,060
|
6,240
|
|
Accumulated Depreciation
|
(1,070)
|
(1,390)
|
|
Patents
|
200
|
160
|
|
Total Assets
|
$17,950
|
$21,510
|
|
Wages Payable
|
$ 5,630
|
$ 6,040
|
|
Note Payable (Long-term)
|
-
|
1,500
|
|
Bonds Payable
|
2,100
|
1,600
|
|
Deferred Taxes Payable
|
300
|
410
|
|
Common Stock
|
1,000
|
1,000
|
|
Preferred Stock
|
4,000
|
4,300
|
|
Paid-in Capital in Excess of Par-Preferred
|
1,750
|
2,260
|
|
Retained Earnings
|
3,340
|
4,400
|
|
Treasury Stock (cost method)
|
(170)
|
-
|
|
Total Liabilities and Stockholders' Equity
|
$17,950
|
$21,510
|
Other Data:
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(1) Net income
|
$1,490
|
|
(2) Depreciation expense
|
530
|
|
(3) Equity in Green Company net income
|
130
|
|
(4) Loss on sale of machinery
|
50
|
|
(5) Amortization of patents
|
40
|
|
(6) Dividends paid (cash)
|
430
|
(7) Machinery with a cost of $450 and a book value of $240 was sold for $190.
(8) Machinery was purchased for $630.
(9) Treasury stock was sold for $250 cash.
(10) Land with a fair market value of $1,500 was purchased by the issuance of a long-term note payable.
(11) Preferred stock was issued for $230 cash.
(12) The remaining changes in the Preferred Stock account and in the Paid-in-Capital in Excess of Par account resulted from the issuance of preferred stock to retire $500 of bonds payable.