P11-73B. (Learning Objectives 2, 3, 4, 5: Preparing the statement of cash flows—indirect method) The 20X6 and 20X5 comparative Balance Sheets and 20X6 Income Statement of King Supply Corp. follow:

King Supply had no noncash investing and financing transactions during 20X6. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of shares, and no treasury share transactions.
Requirements 1. Prepare the 20X6 statement of cash flows, formatting operating activities by using the indirect method.
2. How will what you learned in this problem help you evaluate an investment?

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A1 4 Current assets: 9 PPE: 10 11 123456789UU2ELEKTR22723 King Supply Corp. Comparative Balance Sheets Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Land Equipment, net 12 Total assets 13 Current liabilities: Accounts payable Salary payable Other accrued liabilities 17 Long-term liabilities: Notes payable 19 Shareholders' equity: 20 Share capital, no-par Retained earnings 22 Total liabilities and shareholders' equity December 31 20X6 Increase 20X5 (Decrease) 17,600 5,000 12,600 45,500 44,500 1,000 79,100 67,500 11,600 2,100 6,000 (3,900) 69,100 21,900 47,200 53,100 49,200 3,900 266,500 194,100 72,400 35,800 25,600 10,200 22,000 15,600 6,400 22,900 24,200 (1,300) 50,000 37,000 13,000 88,600 64,300 24,300 47,200 27,400 19,800 266,500 194,100 72,400