- Kemar Company Income Statement For The Year Ended December 31 2020 1 878 701 Sales Less Cost Of Goods Sold 954 230 O 1 (90.83 KiB) Viewed 37 times
KEMAR COMPANY Income Statement For the Year Ended December 31, 2020 $1,878,701 Sales Less: Cost of goods sold $954,230 Operating expenses (excluding depreciation) 234,506 Depreciation expense 86,844 Depreciation Expense-Plant Assets 240,000 Income taxes 33,250 Gain on disposal of Short term Investments -8,000 Interest expense 41,568 4,000 Loss on sale of plant assets Net income ($1,586,398) $292,303 4 Additional information: 1. New plant assets and computer equipment were purchased using cash during the year. 2. Old plant assets costing $87,500 were sold for $36,000 cash when book value was $40,000. 3. Bonds with a face value of $90,000 were converted into $90,000 of common stock. 4. A cash dividend of $70,000 was declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. 6. Short term investment sold for cash $ 16,750. 7. During the year $25,000 of Bonds were repaid in cash Required: Prepare a statement of cash flows for the year ended December 31, 2020 using the indirect method.