lounder Inc., a greeting card company, had the following statements prepared as of December 31, 2020. FLOUNDER INC. COMP

[answerhappygod]

lounder Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
FLOUNDER INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$5,900
$7,000
Accounts receivable
62,500
51,200
Short-term debt investments (available-for-sale)
35,300
17,900
Inventory
39,800
60,100
Prepaid rent
5,100
3,900
Equipment
155,200
130,400
Accumulated depreciation—equipment
(34,700
)
(25,200
)
Copyrights
45,500
50,400
Total assets
$314,600
$295,700
Accounts payable
$46,100
$39,900
Income taxes payable
4,100
6,000
Salaries and wages payable
8,000
4,000
Short-term loans payable
8,000
10,100
Long-term loans payable
60,400
69,100
Common stock, $10 par
100,000
100,000
Contributed capital, common stock
30,000
30,000
Retained earnings
58,000
36,600
Total liabilities & stockholders’ equity
$314,600
$295,700
FLOUNDER INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue
$340,650
Cost of goods sold
175,900
Gross profit
164,750
Operating expenses
121,000
Operating income
43,750
Interest expense
$11,500
Gain on sale of equipment
2,000
9,500
Income before tax
34,250
Income tax expense
6,850
Net income
$27,400
Additional information:
Prepare a statement of cash flows using the direct
method. (Show amounts in the investing and
financing sections that decrease cash flow with either a - sign
e.g. -15,000 or in parenthesis e.g. (15,000).)