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PIZ-2A. Statement of Cash Flows (Indirect Method) North Company's income statement and compara- tive balance sheets as of December 31 of 2019 and 2018 follow: Sales revenue. Cost of goods sold Wages expense.. Advertising expense. Depreciation expense.. Interest expense. Gain on sale of land. Net loss. NORTH COMPANY Income Statement For the Year Ended December 31, 2019 *** $550,000 195,000 31,000 24,000 20,000 (25,000) $770,000 795,000 $(25,000) LO2 X Hmmm

Chapter 12 Assets Cash.... Accounts receivable. Inventory.... Prepaid advertising. Plant assets Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable.. Interest payable Bonds payable Common stock. Retained earnings Treasury stock Total liabilities and stockholders' equity NORTH COMPANY Balance Sheets Dec. 31, 2019 $ 80,000 42,000 107,000 10,000 360,000 (80,000) $519,000 $ 19,000 6,000 210,000 245,000 69,000 (30,000) $519,000 Dec. 31, 2018 $ 32,000 49,000 115,000 14,000 210,000 (56,000) $364,000 $ 25,000 245,000 94,000 $364,000 During 2019, North sold land for $70,000 cash that had originally cost $45,000. North also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases.

pital-expenditures ratio. P12-7A. Statement of Cash Flows (Direct Method) Refer to the data given for the North Company in L04 Problem P12-2A. (Appenc 12A) Required nis a a. Calculate the change in cash that occurred during 2019. b. Prepare a statement of cash flows using the direct method. X www mu

a b P12-7A. Statement of Cash Flows (Direct Method) (Appendix 12A) (104) Cash, December 31, 2019 Cash, December 31, 2018 Cash increase during 2019 Supporting computations: Cash received from customers Cash paid for merchandise purchased Cash paid to employees: $770,000 sales+ $7,000 A/R decrease 777,000 Cash paid for advertising Cash paid for interest: Sale of land Purchase of equipment Issuance of bonds payable: Given in Data Set on the balance sheets Purchase of treasury stock insert lines as necessary $ $ S Example 80,000 (32,000) 48,000 +

Other Analysis Accumulated depreciation increased by $24,000, which is the amount of depreciation expense Common stock account balance did not change Retained earnings decreased by $25,000, which is the amount of net loss North Company Statement of Cash Flows For Year Ended December 31, 2019 Cash flow from operating activities Cash received from customers Cash paid for merchandise purchased Cash paid to employees Cash paid for advertising Cash paid for interest Cash provided by operating activities Cash flow from investing activities Sale of land Purchase of equipment Cash used by investing activities Cash flow from financing activities Issuance of bonds payable Purchase of treasury stock Cash provided by financing activities Net Increase in cash Cash at beginning of year Cash at end of year 25