Additional Information for 2021:1. Net income is $74,000.2 The company purchases $115,000 in equipment.3. Deprecistion expense is $155,000.4. The company repays $105,000 in notes payable.5. The company declares and pays a cash dividend of $27,500.Required:Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease In cash as negative amounts.)statement of Cash FloweFor the Year Ended December 31, 2021Cash Flaws from Operating ActivitiesAdjustments to reconcile net income to netcash flows from operating activitiesNet cash flows from aperating activitiesCash Flaws from Investing ActivitiesNet cash flows from investing activitiesCash Flaws from Financing ActivitiesNet cash flows from financing activitiesCash at the beginning of the periodCash at the end oaf the period The balance sheets for a company, along with additional information, are provided below:Balance SheetsDecember 31, 2021 and 202020212020AssetsCurrent assets:$ 107,800$ 118,10094,50084,5002,500Cash80,000100,0005,000Accounts receivableInventoryPrepaid rentLong-term assets:505,000695,000(278,000)$1,221,600Land505,000810,000(433,000)$1,174,800EquipmentAccumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:$ 104,000Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders' equity:6,3009,00089, 50012,6005,500105,000210,000Common stockRetained earningsTotal liabilities and stockholders' eguity725,000225,500$1,174,800725,000179,000$1,221,600Additional Information for 2021:1. Net income is $74,000.2. The company purchases $115,000 in equipment.3. Depreciation expense is $155,000.4. The company repays $105,000 In notes payable.5. The company declares and pays a cash dividend of $27,500.

Answered: Net cash flows from operating ac laws…

Business

Accounting

Net cash flows from operating ac laws from Investing Activities

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.3C

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