A comparative balance sheet for Culver Corporation is presented as follows.

December 31
Assets
2020
2019
Cash $ 72,830 $ 22,000
Accounts receivable 84,220 68,390
Inventory 182,220 191,390
Land 73,220 112,390
Equipment 262,220 202,390
Accumulated Depreciation-Equipment (71,220 ) (44,390 )
Total $603,490 $552,170
Liabilities and Stockholders' Equity
Accounts payable $ 36,220 $ 49,390
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,270 138,780
Total $603,490 $552,170

Additional information:

1. Net income for 2020 was $129,440. No gains or losses were recorded in 2020.
2. Cash dividends of $64,950 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.

Collapse question part
(a)
Prepare a statement of cash flows for 2020 for Culver Corporation.

See the explanation

Explanation:

                    Culver Corporation

                Statement of cash flows

   For the year ended, December 31, 2020

Net income                                                              $129,440

Add: Cash flow from operating activities

Depreciation                                  26,830

Accounts receivable increases    (15,830)

Inventory decreases                         9,170

Accounts payable decreases       (13,170)                 $7,000

Net cash flow provided by operating activities     $136,440

Cash flow from investing activities

Purchase Equipment                   (59,830)

Sale of Land                                    39,170

Net cash flow used by investing activities              (20,660)

Cash flow from financing activities

Paid cash dividend                       (64,950)

Net cash flow used by financing activities              (64,950)

Changes in cash                                                         50,830

Beginning cash balance                                            22,000

Cash at hand                                                            $72,830