ACC 303/503Homework #2 (R) OLBoca Inc.Balance SheetsDecember 31Assets20202019Cash60,80048,40012, 400Accounts Receivable97,80038,00059, (302)Inventory102,850112,5009, 650Prepaid Expenses28,40025,00031 400Long-term Investments138,000109,00029, 008Plant Assets347,000242,500104, 500Accumulated depreciation(50,000)(52,000)21 0250Total724,850523,400Liabilities and Stockholders' EquityAccounts Payable77,30072,0005, 302Accrued Expenses Payable21,00012,50081 502Dividends Payable3,0003, 020Bonds Payable170,000146,00024, 000Common Stock262,000175,00087,007Retained Earnings191,550117,900731650Total724,850523,400Additional Information:1. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 weresold for $1,500 cash.2. A new plant asset was purchased directly in exchange for common stock valued at $40,000.3. New bonds were issued at par for $60,000.4. 2020 Net income was $154,480.5. A $1,000 prior period adjustment was recorded in 2020 to correct an understatement ofdepreciation in 2015. The 2019 balance sheet is appropriately restated.6. Accounting for the long-term investments was appropriately using the equity method. Boca's shareof investee net income was $20,000. Other changes in Long-term investments were caused byadditional stock purchases. No dividends were received.Required1. Prepare a 2020 statement of cash flows using the indirect method. Use the textbook format (pages1,339, 1,342, 1,345). Do not submit supporting computations.Submission Instructions:Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, andHomework #2 in the upper left corner.Submit your assignment through the upload feature within Moodle. Assignments should not beemailed to the instructor. PLEASE BE SURE YOUR ASSIGNMENT IS ACTUALLY SUBMITTED ANDNOT IN "DRAFT" STATUS. There is a requirement to click a box to acknowledge the submissionis your original work to complete the submission process.
