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.

Prepare the statement of cash flows using the indirect method:

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: 115,000 79,600 99,000 4,800 Cash 131,200 94,000 Accounts receivable Inventory Prepaid rent 83,600 2,400 Long-term assets: Land 500,000 806,000 (432,000) $1,172,400 500,000 690,000 (276,000) $1,225,200 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 103,000 6,600 8,800 88,600 13,200 5,400 220,000 110,000 720,000 224,000 $1,172,400 720,000 178,000 $1,225,200 Common stock Retained earnings Total liabilities and stockholders' equity PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Net income 73,000 Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Decrease in accounts receivable Increase in inventory Increase in prepaid rent Increase in accounts payable Decrease in interest payable Increase in income tax payable $ Net cash flows from operating activities 73,000 Cash Flows from Investing Activities Purchase of equipment Net cash flows from investing activities Cash Flows from Financing Activities Payment of notes payable Payment of cash dividends Net cash flows from financing activities 0 Net decrease in cash Cash at the beginning of the period Cash at the end of the period 0