C D E F G H 1 Preparing the statement of cash flows-indirect method with noncash transactions 2 Accounts receivable 3 Inventories 2 3 The 2021 comparative balance sheet and income statement of All Wired, Inc., follow. 4 5 6 7 8 9 0 Current assets: 11 Cash and cash equivalents ALL WIRED, INC. Comparative Balance Sheet December 31, 2021 and 2020 2021 Increase 2020 (Decrease) $26,700 $15,600 $11,100 $26,500 $25,300 $1,200 $79,900 $91,900 ($12,000) Revenues: Sales revenue Interest revenue Total revenues Expenses: ALL WIRED, INC. Income Statement Year Ended December 31, 2021 $438,000 $8,500 $446,500 Cost of goods sold $209,200 14 Plant assets: Salary expense $72,400 5 Land 6 Equipment, net $35,500 $11,000 $24,500 $102,900 $90,700 $12,200 Depreciation expense $14,500 Other operating expense $10,000 7 Total assets $271,500 $234,500 $37,000 Interest expense $21,500 B Income tax expense $19,400 9 Current liabilities: Total expenses $347,000 20 Accounts payable $99,500 21 Accrued liabilities 2 Long-term liabilities: 3 Notes payable 24 Stockholders' equity 25 Common stock $35,600 $30,500 $5,100 $28,900 $30,600 ($1,700) $77,000 $103,000 ($26,000) Net income 26 Retained earnings 7 Total liabilities and stockholders' equity 8 29 30 $88,200 $64,300 $23,900 $41,800 $6,100 $35,700 $271,500 $234,500 $37,000 Additionally, All Wired purchased land of $24,500 by financing it 100% with long-term notes payable during 2021. During the year, there were no sales of land or enuinment no additional issuances of notes navable no retirements of stock and no treasury stock transactions 1 Requirements 12 1. Prepare the 2020 statement of cash flows, formatting operating activities by the indirect method. 83 2 How will what you learned in this problem help you evaluate an investment?