Preparation of statement of cash flows (indirect method)
The net changes in the statement of financial position accounts of Brown Derby Corp. for calendar 2020 are shown below. Brown Derby adheres to ASPE.
1. On January 2, 2020, FV-NI investments costing $ 121,000 were sold for $ 150,000.
2. The company paid the cash dividend on February 1, 2020, and distributed the stock dividend on August 1, 2020.
3. Accounts receivable of $ 16,200 and $ 19,400 were considered uncollectible and written off in 2020 and 2019, respectively.
4. Major repairs of $ 25,000 to the equipment were debited to the Plant and Equipment account during the year.
5. The 100% owned subsidiary reported a net loss for the year of $ 20,000.
6. At January 1, 2020, the cash balance was $ 136,000.
7. Long-term bonds were issued at par.
Instructions
Prepare a statement of cash flows (indirect method) for calendar 2020.

Question

Preparation of statement of cash flows (indirect method)
The net changes in the statement of financial position accounts of Brown Derby Corp. for calendar 2020 are shown below. Brown Derby adheres to ASPE.  
1. On January 2, 2020, FV-NI investments costing $ 121,000 were sold for $ 150,000.
2. The company paid the cash dividend on February 1, 2020, and distributed the stock dividend on August 1, 2020.
3. Accounts receivable of $ 16,200 and $ 19,400 were considered uncollectible and written off in 2020 and 2019, respectively.
4. Major repairs of $ 25,000 to the equipment were debited to the Plant and Equipment account during the year.
5. The 100% owned subsidiary reported a net loss for the year of $ 20,000.
6. At January 1, 2020, the cash balance was $ 136,000.
7. Long-term bonds were issued at par.
Instructions
Prepare a statement of cash flows (indirect method) for calendar 2020.

Quizplus · Accepted Answer

The Answer of Preparation of statement of cash flows (indirect method)
The net changes in the statement of financial position accounts of Brown Derby Corp. for calendar 2020 are shown below. Brown Derby adheres to ASPE.  
1. On January 2, 2020, FV-NI investments costing $ 121,000 were sold for $ 150,000.
2. The company paid the cash dividend on February 1, 2020, and distributed the stock dividend on August 1, 2020.
3. Accounts receivable of $ 16,200 and $ 19,400 were considered uncollectible and written off in 2020 and 2019, respectively.
4. Major repairs of $ 25,000 to the equipment were debited to the Plant and Equipment account during the year.
5. The 100% owned subsidiary reported a net loss for the year of $ 20,000.
6. At January 1, 2020, the cash balance was $ 136,000.
7. Long-term bonds were issued at par.
Instructions
Prepare a statement of cash flows (indirect method) for calendar 2020.

Preparation of Statement of Cash Flows (Indirect Method)