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14 Number A B 1 Exercise 12 D E 2 The following information is available for Umbrella Corporation for the year ended December 31, 2021:

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14 Number A B 1 Exercise 12 D E 2 The following information is available for Umbrella Corporation for the year ended December 31, 2021: 3 Collection of principal on long term loan to a supplier 4 Acquisition of equipment for cash 40,000 5 Proceeds from the redemption of long-term investment at carrying value 15,000 6 Issue of common shares for cash 27,000 7 Depreciation expense 25,000 8 Redemption of bonds payable at amortized cost 25,000 9 24,000 Payment of cash dividends 10 Profit 14,000 11 30,000 Purchase of land by issuing bonds payable 12 40,000 13 In addition, the following information is available from the comparative balance sheet for Umbrella at the end of 2020 and 20213 2,021 2.020 15 Cash 102,000 14,000 16 Accounts receivable (net) 20,000 15,000 17 Prepaid insurance 17 000 13,000 18 Total current assets 139,000 42.000 19 20 Accounts payable 25,000 19,000 21 Salaries payable 4.000 7,000 22 Total current liabilities 29,000 26.000 14 23 24 Instructions 25 Prepare Umbrella's cash flow statement for the year ended December 31, 2021, using the indirect method. 26 27 Solution 12 (22-27 min.) 14 Number styles B D Instructions 5 Prepare Umbrella's cash flow statement for the year ended December 31, 2021, using the indirect method 5 7 Solution 12 22-27 min.) 3 UMBRELLA CORPORATION 0 Cash Flow Statement 1 Year Ended December 31, 2021 2 33 Operating activities Profit 15 Adjustments to reconcile profit to net cash provided (used) by 16 operating activities 97 Depreciation Increase in accounts receivable 39 Increase in prepaid insurance 0 Increase in accounts payable 41 Decrease in salaries payable 42 Net cash provided by operating activities 43 44 Investing activities 45 Collection of long-term loan 46 Proceeds from the redemption of tong-term investment 47 Purchase of equipment Net cash provided by investing activities 49 So financing activities 51 Issue of common shares Cash Flow Horizontal Analysis Ratio Analysis TO Clipboard To - Merge Center Nigen Conditional format Formatting te styles Nu D A 80 Increase in accounts payable 31 Decrease in salaries payable 22 Net cash provided by operating activities 13 Investing activities 15 Collection of long term loan 46 Proceeds from the redemption of long term investment 17 Purchase of equipment Net cash provided by investing activities -19 50 Financing activities 51 Issue of common shares 52 Redemption of bonds $3 Payment of dividends Net cash used by financing activities 35 56 Net Increase in cash S7 Cash, January 1 58 Cash, December 31 59 61 62 DOBROD 38 55

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