P11-71B. (Learning Objectives 2, 3, 4, 5: Preparing the statement of cash flows—indirect method) Newton Software Corp. has assembled the following data for the year ended December 31, 20X6 and 20X5:

Requirement 1. Prepare Newton Software Corp.’s statement of cash flows using the indirect method to report operating activities. Include an accompanying schedule of noncash investing and financing activities.

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A1 3 Current Accounts: 4 Current assets: -234567890123 Cash and cash equivalents Accounts receivable Inventories Prepaid expenses 9 Current liabilities: 11 Accounts payable Income tax payable Accrued liabilities B December 31 20X6 20X5 66,400 23,000 36,000 64,200 89,500 84,000 3,300 2,300 57,300 55,700 28,000 16,300 15,800 7,400