130 #8 Cash Flow Homework Problem 1 From the following information for Declan's Doodads, prepare a Statement of Cash Flows for the year ended December 31, 2021. Balance 12/31/21 Balance 12/31/20 Cash 95,900 38.900 Accounts Receivable 78,000 45,000 Inventory 70,000 90,000 Prepaid Insurance 3,600 2,600 Equipment 320,000 280,000 Accumulated Depreciation 80,000 20,000 Land 130,000 Security Deposits 32,000 20,000 Accounts Payable 39,000 30,000 Wages Payable 2.000 10,000 Rent Payable 12,000 4,000 Interest Payable 6,500 7,500 Taxes Payable 10,000 5,000 Note Payable 130,000 150,000 Common Stock ($1 each) 310,000 160,000 Retained Earnings 140,000 90,000 Sales 1,200,000 Cost of Goods Sold 700,000 Wage Expense 220,000 Rent Expense 48,000 Office Expenses 46,000 Depreciation Expense 60,000 Utilities Expense 15,000 Insurance Expense 6,000 Interest Expense 14,000 Income Tax Expense 27,000 The land was acquired on March 31, 2021 for cash. The additional common was sold on March 31, 2021 for $1 per share. The company did not sell any equipment during the year. All equipment purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. The Note Payable requires payments of $20,000 principal plus interest at 10% on June 30th of each year