Condensed financial data of Culver Company for 2020 and 2019 are presented below.
CULVER COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
2020 2019
Cash $1,830 $1,160
Receivables 1,750 1,270
Inventory 1,580 1,860
Plant assets 1,900 1,690
Accumulated depreciation (1,190 ) (1,150 )
Long-term investments (held-to-maturity) 1,280 1,400
$7,150 $6,230
Accounts payable $1,220 $920
Accrued liabilities 210 250
Bonds payable 1,410 1,520
Common stock 1,910 1,730
Retained earnings 2,400 1,810
$7,150 $6,230
CULVER COMPANY
INCOME STATEMENT
THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,930
Cost of goods sold 4,670
Gross margin 2,260
Selling and administrative expenses 940
Income from operations 1,320
Other revenues and gains Gain on sale of investments 80
Income before tax 1,400
Income tax expense 550
Net income 850
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 direct method.
