ACFI-492/592 Advanced Financial ReportingThe Balance Sheets for Gomes, Inc. for the years ending...

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ACFI-492/592 Advanced Financial ReportingThe Balance Sheets for Gomes, Inc. for the years ending December 31, 2020 and 2019 are shown below:Dec. 31, 2020Dec. 31, 2019Cash150 240108 300Accounts Receivable46 50041 500Allowance for Doubtful Amounts-3 800-2 600Prepaid Insurance4 8003 200Prepaid Rent05 600Inventories70 96058 200Land50 00050 000Buildings175 000175 000Equipment74 00074 000Computer equipment48 00029 000 Less: Accumulated Depreciation Buildings-13 000-7 500 Equipment-48 500-35 500 Computer Equipment-9 500-26 500Patents6 70017 700551 400490 400Dec. 31, 2020Dec. 31, 2019Accounts payable24 00029 000Accrued liabilities5 5006 500Mortgage payable47 400155 400Bonds payable100 0000Discount on Bonds-7 0000Common Stock ($2PV)55 00050 000Additional paid-in capital - Common Stock92 50067 500Retained earnings234 000182 000551 400490 400The income statement for 2020 is as follows: Sales884 060 Cost of sales XXXXXXXXXX Gross profit325 300 Operating expenses XXXXXXXXXX Net Gain (Loss)1 200 Net income (Loss)134 5001. On Jan. 3, 2020 Gomes, Inc. issued 2,500 shares of Common Stock for $12/sh.2. On December 1, 2020 cash dividends of $3 per share were declared and paid.3. Computer equipment which cost $23,000 and book value of $2,000 was sold for $2,200.4. Purchased new computer equipment.5. On December 5, 2020 sold $8,000 patents for $9,000 cash.6. Issued Bonds on December 31, 2020.Instructions(a) From the information above, prepare a statement of cash flows (indirect method) for Gomes, Inc. for the year ended December 31, 2020.(b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.

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	ACFI-492/592 Advanced Financial Reporting
	The Balance Sheets for Gomes, Inc. for the years ending December 31, 2020 and 2019 are shown below:
		Dec. 31, 2020		Dec. 31, 2019
	Cash	150,240		108,300		41,940
	Accounts Receivable	46,500		41,500		5,000
	Allowance for Doubtful Amounts	(3,800)		(2,600)		(1,200)
	Prepaid Insurance	4,800		3,200		1,600
	Prepaid Rent	0		5,600		(5,600)
	Inventories	70,960		58,200		12,760
	Land	50,000		50,000		0
	Buildings	175,000		175,000		0
	Equipment	74,000		74,000		0
	Computer equipment	48,000		29,000		19,000	2,500
	   Less: Accumulated Depreciation					0
	            Buildings	(13,000)		(7,500)		(5,500)
	            Equipment	(48,500)		(35,500)		(13,000)
	            Computer Equipment	(9,500)		(26,500)		17,000
	Patents	6,700		17,700		(11,000)
		551,400		490,400		61,000
		Dec. 31, 2020		Dec. 31, 2019
						0
	Accounts payable	24,000		29,000		(5,000)
	Accrued liabilities	5,500		6,500		(1,000)
	Mortgage payable	47,400		155,400		(108,000)
	Bonds payable	100,000		0		100,000
	Discount on Bonds	(7,000)		0		(7,000)
	Common Stock ($2PV)	55,000		50,000		5,000
	Additional paid-in capital - Common Stock	92,500		67,500		25,000
	Retained earnings	234,000		182,000		52,000
		551,400		490,400		61,000
	The income statement for 2020 is as follows:
	          Sales			884,060
	          Cost of sales			(558,760)
	          Gross profit			325,300
	          Operating expenses			(192,000)
	          Net Gain (Loss)			1,200
	          Net income (Loss)			134,500
	1. On Jan. 3, 2020 Gomes, Inc. issued  2,500 shares of Common Stock for $12/sh.
	2. On December 1,

ACFI-492/592 Advanced Financial Reporting The Balance Sheets for Gomes, Inc. for the years ending December 31, 2020 and 2019 are shown below: Dec. 31, 2020 Dec. 31, 2019 Cash 150 240 108 300 Accounts...

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ACFI-492/592 Advanced Financial Reporting
The Balance Sheets for Gomes, Inc. for the years ending December 31, 2020 and 2019 are shown below:

	Dec. 31, 2020	Dec. 31, 2019
Cash	150 240	108 300
Accounts Receivable	46 500	41 500
Allowance for Doubtful Amounts	-3 800	-2 600
Prepaid Insurance	4 800	3 200
Prepaid Rent	0	5 600
Inventories	70 960	58 200
Land	50 000	50 000
Buildings	175 000	175 000
Equipment	74 000	74 000
Computer equipment	48 000	29 000
Less: Accumulated Depreciation
Buildings	-13 000	-7 500
Equipment	-48 500	-35 500
Computer Equipment	-9 500	-26 500
Patents	6 700	17 700
	551 400	490 400
	Dec. 31, 2020	Dec. 31, 2019
	Dec. 31, 2020	Dec. 31, 2019
Accounts payable	24 000	29 000
Accrued liabilities	5 500	6 500
Mortgage payable	47 400	155 400
Bonds payable	100 000	0
Discount on Bonds	-7 000	0
Common Stock ($2PV)	55 000	50 000
Additional paid-in capital - Common Stock	92 500	67 500
Retained earnings	234 000	182 000
	551 400	490 400

The income statement for 2020 is as follows:
Sales		884 060
Cost of sales		XXXXXXXXXX
Gross profit		325 300
Operating expenses		XXXXXXXXXX
Net Gain (Loss)		1 200
Net income (Loss)		134 500

1. On Jan. 3, 2020 Gomes, Inc. issued 2,500 shares of Common Stock for $12/sh.
2. On December 1, 2020 cash dividends of $3 per share were declared and paid.
3. Computer equipment which cost $23,000 and book value of $2,000 was sold for $2,200.
4. Purchased new computer equipment.
5. On December 5, 2020 sold $8,000 patents for $9,000 cash.
6. Issued Bonds on December 31, 2020.

Instructions
(a) From the information above, prepare a statement of cash flows (indirect method) for Gomes, Inc. for the year ended December 31, 2020.

(b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.