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2. The Fast Motor Corporation reported the following balance sheet data for 2021 and 2022. 2022 Cash $ 70,000 2021 $20,000 Short-term investments 15,000
2. The Fast Motor Corporation reported the following balance sheet data for 2021 and 2022. 2022 Cash $ 70,000 2021 $20,000 Short-term investments 15,000 45,000 Accounts receivable Inventory 80,000 58,000 190,000 145,000 Prepaid insurance 1,000 5,000 Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable 1,250,000 (610,000) $ 996,000 $ 76,000 120,000 50,000 1,125,000 (572,000) $ 826,000 $ 92,000 47,000 75,000 Salaries payable Rent payable (current) Bonds payable 100,000 0 Common stock 300,000 300,000 Retained earnings 350,000 312,000 Total liabilities and shareholders' equity $ 971,000 $ 826,000 Additional information for 2022: (1.) Sold short-term investments costing $30,000 for $34,000. (2.) Equipment costing $35,000 with a book value of $10,000 was sold for $3,000. (3.) Issued 6% bonds payable at par, $100,000. (4.) Purchased new equipment for cash $160,000. (5.) Paid cash dividends of $22,000. (6.) Net income was $60,000. Required: Prepare a complete statement of cash flows for 2022 using the indirect method for cash flows from operating activities. (14 points)
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