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Hardware Suppliers reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) HARDWARE SUPPLIERS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Software Distributors reports net income of $45,000. Included in that number is depreciation expense of $5,000 and a loss on the sale of land of $4,000. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $15,00O, a decrease in inventory of $10,000, and an increase in accounts payable of $35,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) SOFTWARE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 115,000 131,200 79,600 94,000 Accounts receivable Inventory Prepaid rent 83,600 99,000 4,800 2,400 Long-term assets: Land 500,000 500,000 Equipment Accumulated depreciation 690,000 806,000 (432,000) (276,000) $1,225,200 $1,172,400 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $ $ 103,000 88,600 6,600 8,800 13,200 5,400 Long-term liabilities: Notes payable Stockholders' equity: 220,000 110,000 720,000 224,000 720,000 Common stock Retained earnings 178,000 Total liabilities and stockholders' equity $1,225,200 $1,172,400 Additional Information for 2021: 1. Net income is $73,000. 2. The company purchases $116,000 in equipment. 3. Depreciation expense is $156,000. 4. The company repays $110,000 in notes payable. 5. The company declares and pays a cash dividend of $27,000. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period
