Using the following data, prepare Stanley Inc.’s Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Net income? ? ? ? ? ? ?

1.

Using the following data, prepare Stanley Inc.'s Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.

Net income                                 $525,000 

Depreciation expense                   82,500 

Gain on disposal of equipment     14,600 

Increase in accounts receivable   10,150 

Decrease in accounts payable      (3,300) 

2.

The comparative balance sheet of Jones Furniture & Appliances for December 31, 2020 and 2019 is shown as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows:

A. The investments were sold for $120,000 cash.
B. Equipment and land were acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $280,000 credit to Retained Earnings for net income.
F. There was a $75,000 debit to Retained Earnings for cash dividends declared.

Prepare Jones Furniture & Appliances' statement of cash flows, using the indirect method of presenting cash flows from operating activities                                 

3.

Perform a current position analysis by calculating the working capital, current ratio, and quick ratio on the following company for 2020 and 2019 to determine if its ability to pay current liabilities has improved or gotten worse. Round ratios to one decimal place.

                                      2020                    2019 

Current assets           $195,000             $140,600 

Quick assets                125,000               100,200 

Current liabilities           196,100              145,600 

Working capital              (1,100)                (5,000) 

4.

Use the information below to calculate the working capital, current ratio, and quick ratio for 2020 and 2019. Has the corporation's position to pay current liabilities improved or gotten worse? Round ratios to one decimal place.

                                                             2020                               2019 

Cash and cash equivalents              $ 24,500                          $ 22,650 

Accounts receivable                           129,800                           135,000 

Inventories                                          215,350                           209,000 

Total current assets                           $369,650                         $366,650 

Current liabilities                                $346,100                         $345,200 

Working capital                                    23,550                              21,450 

5.

With the common-sized income statements shown that compare Small Supply to the industry average, identify weaknesses the company has.