Nikki's Labs, Inc
Income Statement
Year Ended September 30, 2020

Description	Amount	Total
Sales Revenue		231,000
Cost of Goods Sold		92,000Single line
Gross Profit		Single line139,000
Subcategory,Operating Expenses:
Salaries Expense	56,000
Depreciation Expense-Plant Assets	24,000Single line	Single line
Total Operating Expenses		Single line80,000Single line
Net Income Before Income Taxes		Single line59,000
Income Tax Expense		9,000Single line
Net Income		Single line50,000

 

Additional data follow:

a. Acquisition of plant assets is $121,000. Of this amount, $103,000 is paid in cash and $18,000 by signing a note payable.

b. Cash receipt from sale of land totals $24,000. There was no gain or loss.

c. Cash receipts from issuance of common stock total $32,000.

d. Payment of notes payable is $17,000.

e. Payment of dividends is $8,000.

f. From the balance sheet:

	September 30
	2020	2019
Cash	34,000	14,000
Accounts Receivable	44,000	63,000
Merchandise Inventory	92,000	84,000
Plant Assets	203,000	60,000
Accumulated Depreciation	-39,000	-13,000
Land	74,000	101,000
Accounts Payable	32,000	10,000
Accrued Liabilities	23,000	24,000
Notes Payable (long-term)	19,000	16,000
Common Stock	37,000	9,000
Retained Earnings	309,000	266,000

Prepare Nikki's Labs statement of cash flows for the year ended September 30, 2020, using the indirect method.

Include a separate section for non-cash investing and financing activities

Nikki's Labs
Statement of Cash Flows - Indirect Method
For Year Ending September 30, 2020

Description	Amount	Total
Subcategory,Cash Flows for Operating Activities:
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Subcategory,Adjustment to reconcile Net Income to Net Cash flow
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Subcategory,Changes in Operating Assets & Liabilities
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income	Single line	Single line
Net Cash provided by Operating Activities		Single line
Subcategory,Cash Flows from Investing Activities:
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income	Single line	Single line
Net Cash used for Investing Activities		Single line
Subcategory,Cash Flows from Financing Activities:
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income	Single line	Single line
Net Cash provided by Financing Activities		Single lineSingle line
Net Increase (Decrease) in Cash		Single line
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income		Single line
Cash Balance - September 30, 2020		Single line
Subcategory,Non-Cash Financing Activties:
Acquisition of Plant Assets with Notes PayableAcquistion of Plant AssetCash Balance - September 30, 2019Cash Payment - DividendsCash Payment - Notes PayableCash Receipt from Sale of LandCash Receipts sale of Common StockDecrease in Accounts ReceivableDecrease in Accrued LiabilitiesDepreciation Expense-Plant AssetsIncrease in Accounts PayableIncrease in Merchandise InventoryNet Income		Single line
Total Non-Cash Investing & Financing Activities		Single lineDouble line