a. Wise Photography reported net income of $130,000 for 2020. Included in the income statement were depreciation expense of $6,000, amortization expense of $2,000, and a gain on disposal of equipment of plant assets of $3,600. Wise’s comparative balance sheets show the following balances.
Calculate net cash provided by operating activities for Wise Photography.
b. Alex Company reported the following information for 2020.
Additional information:
1. Operating expenses include depreciation expense of $40,000.
2. Land was sold at its book value for cash.
3. Cash dividends of $85,000 were declared and paid in 2020.
4. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $51,000 and a book value of $36,000 was sold for $34,000 cash.
5. Bonds of $50,000 were redeemed at their for cash.
6. ($1 par) of $170,000 was issued for cash.
Use this information to prepare a statement of cash flows using the indirect method.
