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Carla Vista Ltd. Comparative Statement of Financial Position December 31 Assets 2021 2020 Cash $ 85,000 $ 45,400 Accounts receivable 140,000 101,600 Inventory 80,000 120,500

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Carla Vista Ltd. Comparative Statement of Financial Position December 31 Assets 2021 2020 Cash $ 85,000 $ 45,400 Accounts receivable 140,000 101,600 Inventory 80,000 120,500 Prepaid insurance 10,400 7,700 Equipment 302,000 270,500 Accumulated depreciation-equipment (71,000) (51,000) Total assets $546,400 $ 494,700 Liabilities and Shareholders' Equity Accounts payable $ 88,800 $ 72,900 Salaries and wages payable 12,800 8,400 Income taxes payable 16,800 18,800 Mortgage payable 110,800 120,500 Common shares 218,500 210,000 Retained earnings 98,700 64,100 Total liabilities and shareholders' equity $546,400 $ 494,700 Additional information: Net Income was $54,000. New equipment was purchased and none was sold. Common shares were issued for cash. Cash dividends were paid to common shareholders. Prepare the statement of cash flows using the indirect format. (Show amounts that decrease cash flow with either a sign ... 15,000 or in thesis ... (15,000).) Carla Vista Ltd. Statement of Cash Flows For the Year Ended December 31, 2021 . Cash Flows from Operating Activities Net Income/(Loss) 54,000 Adjustments to reconcile net income to net cash provided by operating activities: Increase in Accounts Receivable (38,400) Decrease in Inventory 40,500 Decrease in Prepaid Insurance (2700) Increase in Accounts Payable 15900 Increase in Salaries and Wages Payable 4400 Decrease in Income Taxes Payable (2000) Depreciation Expense 20000 37700 Net Cash Provided by Operating Activities 16300 Cash Flows from Investing Activities Purchase Equipment (31500) Net Cash Used by Investing Activities (31500) Net Cash Provided by Financing Activities : Common Shares Issued 8500 37700 Net Cash Provided by Operating Activities 16300 Cash Flows from Investing Activities Purchase Equipment (31500) Net Cash Used by Investing Activities (31500) Net Cash Provided by Financing Activities Common Shares Issued 8500 Cash Dividends (34600)

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