Condensed financial data of Blue Company for 2020 and 2019 are presented below. BLUE COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
2020 2019
Cash $1,780 $1,170
Receivables 1,760 1,280
Inventory 1,620 1,880
Plant assets 1,910 1,670
Accumulated depreciation (1,210) (1,160)
Long-term investments (held-to-maturity) 1,330 1,440
$7,190 $6,280
Accounts payable $1,230 $920
Accrued liabilities 210 250
Bonds payable 1,370 1,560
Common stock 1,920 1,680
Retained earnings 2,460 1,870
$7,190 $6,280
BLUE COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,820
Cost of goods sold 4,600
Gross margin 2,220
Selling and administrative expenses 910
Income from operations 1,310
Other revenues and gains
Gain on sale of investments 80
Income before tax 1,390
Income tax expense 540
Net income 850
Cash dividends 260
Income retained in business $590
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of cash flows using the indirect method.