Scheeler Company Has the Following Comparative Balance Sheet Data Available

question 47

Essay

Scheeler Company has the following comparative balance sheet data available:
Additional information:
1.The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31,2020.
2.Dividends declared and paid in 2020,$70,000.
3.Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.
4.New equipment was purchased for cash.
5.No common stock was retired during 2020.
Using the indirect method,prepare the statement of cash flows for the year ending December 31,2020.

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Definitions:

Direct Labor

The labor costs of workers who are directly involved in the production of goods or the rendering of services.

Direct Labor Hour

A measure of the amount of time workers spend directly manufacturing a product.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are significant in cost.

Total Cost

The complete amount of costs involved in producing, purchasing, and/or selling goods or services, including fixed and variable costs.