A B C D E F G 2.020 14,000 15,000 13,000 42.000 19,000 7,000 26.000 1 Exercise 12 2 The following information is available for Umbrella Corporation for the year ended December 31, 2021: 40,000 3 Collection of principal on long-term loan to a supplier 4 Acquisition of equipment for cash 15,000 27,000 5 Proceeds from the redemption of long-term investment at carrying value 6 Issue of common shares for cash 25,000 7 Depreciation expense 25,000 24,000 8 Redemption of bonds payable at amortized cost 9 Payment of cash dividends 14,000 10 Profit 30,000 11 Purchase of land by issuing bonds payable 40,000 12 13 In addition, the following information is available from the comparative balance sheet for Umbrella at the end of 2020 and 2021: 2,021 14 15 Cash 102,000 16 Accounts receivable (net) 20,000 17 Prepaid insurance 17,000 18 Total current assets 139.000 19 20 Accounts payable 25,000 21 Salaries payable 4,000 22 Total current liabilities 29.000 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.) 28 29 UMBRELLA CORPORATION 30 Cash Flow Statement 31 Year Ended December 31, 2021 32 33 Operating activities 34 Profit 35 Adjustments to reconcile profit to net cash provided (used) by 36 operating activities 37 Depreciation 38 Increase in accounts receivable 39 Increase in prepaid insurance 40 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 long-term investment 47 Purchase of equipment 48 Net cash provided by investing activities 49 50 Financing activities 51 Issue of common shares 52 Redemption of bonds 53 Payment of dividends 54 Net cash used by financing activities 55 56 Net Increase in cash 57 Cash, January 1 58 Cash, December 31 59 60 61