PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 108,900 $ 126,800 Accounts receivable 82,000 97,000 Inventory Prepaid rent Long-term assets: Land 105,000 6,000 89,000 3,000 530,000 530,000 Equipment Accumulated depreciation 830,000 720,000 (438,000) $1,223,900 (288,000) $1,277, Total assets Liabilities and Stockholders' Equity Current liabilities: $ 109,000 Accounts payable Interest payable Income tax payable 2$ 94,000 13,800 6,900 10,000 6,000 Long-term liabilities: Notes payable Stockholders' equity: 115,000 230,000 Common stock 750,000 750,000 Retained earnings Total liabilities and stockholders' equity 233,000 184,000 $1,223,900 $1,277,800

Question

The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:

Additional Information for 2021:
1. Net income is $79,000.
2. The company purchases $110,000 in equipment.
3. Depreciation expense is $150,000.
4. The company repays $115,000 in notes payable.
5. The company declares and pays a cash dividend of $30,000.

Required:
Prepare the statement of cash flows using the indirect method.

PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021
2020
Assets
Current assets:
Cash
$ 108,900
$ 126,800
Accounts receivable
82,000
97,000
Inventory
Prepaid rent
Long-term assets:
Land
105,000
6,000
89,000
3,000
530,000
530,000
Equipment
Accumulated depreciation
830,000
720,000
(438,000)
$1,223,900
(288,000)
$1,277,
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
$ 109,000
Accounts payable
Interest payable
Income tax payable
2$
94,000
13,800
6,900
10,000
6,000
Long-term liabilities:
Notes payable
Stockholders' equity:
115,000
230,000
Common stock
750,000
750,000
Retained earnings
Total liabilities and stockholders' equity
233,000
184,000
$1,223,900
$1,277,800
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Transcribed Image Text

PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 108,900 $ 126,800 Accounts receivable 82,000 97,000 Inventory Prepaid rent Long-term assets: Land 105,000 6,000 89,000 3,000 530,000 530,000 Equipment Accumulated depreciation 830,000 720,000 (438,000) $1,223,900 (288,000) $1,277, Total assets Liabilities and Stockholders' Equity Current liabilities: $ 109,000 Accounts payable Interest payable Income tax payable 2$ 94,000 13,800 6,900 10,000 6,000 Long-term liabilities: Notes payable Stockholders' equity: 115,000 230,000 Common stock 750,000 750,000 Retained earnings Total liabilities and stockholders' equity 233,000 184,000 $1,223,900 $1,277,800