Answer:
Bonita Corporation
Statement of Cash Flows for the year ended December 31, 2020:
Operating Activities:
Net income                $272,000
add loss from sale of investment 17,000
add Depreciation expense      28,900
Changes in working capital:
Accounts receivable          $8,500
Current liabilities            -28,900
Net cash from operations   $297,500
Investing Activities:
Sale of investments        $20,400
Purchase of equipment      -98,600
Net cash from investing    -$78,200
Financing Activities:
Payment of dividends      -$51,000
Net cash flows           $168,300
Explanation:
a) Data and Calculations:
Comparative Balance Sheets
                           2020    2019    Changes
Cash                   $ 300,900 $ 132,600  +$168,300
Accounts receivable        306,000   314,500    -$8,500
Investments                88,400   125,800   -$37,400
Equipment                506,600   408,000  +$98,600
Accumulated Depreciation
 -Equipment              (180,200 )  (151,300 )  +(28,900)
Current liabilities           227,800   256,700   -$28,900
Common stock            272,000   272,000     0
Retained earnings         521,900   300,900 Â
Additional Information
Loss from sale of investment = $17,000
Net income = $272,000
Dividends = $51,000
Cash Beginning Balance  $132,600
Net cash flows          $168,300
Cash, Ending balance   $ 300,900
