Qun: Chl3 part 3
Powell Corporation's comparative statements of financial position are
presented below.
POWELL CORPORATION
Comparative Statement of Financial Position
December 31
2020
Land
€ €18,000
Buildings
70,000
Accumulated depreciation-buildings
( (15,000)
Accounts receivable
18,200
Cash
21,570
Total
€112,770
2019
€26,000
70,000
( (10,000)
23,400
10,700
€120,100
Common Stock
Retained eamings
Accounts payable
Total
€ €75,000
25,400
12.370
€112,770
€ €69,000
20,000
31,100
€ €120,100
Additional information:
1. Ignore income tax. Netincome was €27,900. Dividends declared and paid
were €22,500.
2. All other changes in non-current account balances had a direct effect on
cash flows, except the change in accumulated depreciation. The land was sold
for €5,900.
Instruction
Prepare a statement of cash flows for 2020 using the indirect method.