CASE 1) K L M N 0 CASH FLOW (CH 13) INDIRECT METHOD E H PRODUCING A CASH FLOW STATEMENT (INDIRECT METHOD) FOR SUFE CORP. FOR FY 2021 The following financial information was reported in 2020 and 2021: INCOME STATEMENT FOR FY 2021 SUFE CORP. COMPARATIVE BALANCE SHEETS ULTIMO FY 2021 AND 2020 SUFE CORP. 7 FY 2021 NET SALES COST OF GOODS SOLD M USD $ $672.00 $410.00 M USD $ FY 2021 FY 2020 ASSETS CASH $100.80 $57.10 0 ACCOUNTS RECEIVABLES NET $69.70 $51.60 1 GROSS PROFIT $262.00 INVENTORY $66.10 $95.80 2 PREPAID EXPENSES $4.30 $6.20 3 OTHER OPERATING EXPENSES EQUIPMENT $126.30 $115.00 4 5 6 7 OTHER EXPENSES $66.60 ACCUMULATED DEPRECIATION EQUIPMENT -$28.60 -$10.70 DEPRECIATION & AMORTIZATION $57.80 TOTAL ASSETS $338.60 $315.00 TOTAL OTHER EXPENSES $124.40 8 GAIN ON SALES OF EQUIPMENT 9 O INCOME BEFORE TAXES 1 2 3 NET INCOME 4 5 6 7 LIABILITIES AND EQUITY $2.40 ACCOUNTS PAYABLE WAGES PAYABLE INCOME TAXES PAYABLE $140.00 INCOME TAX EXPENSE $56.00 NOTES PAYABLE (LONG TERM) $84.00 COMMON STOCK $5 PAR VALE RETAINED EARNINGS TOTAL LIABILITIES AND EQUITY $26.10 $32.30 $7.50 $17.00 $3.80 $2.10 $46.00 $71.00 $232.00 $183.00 $24.90 $7.90 $338.60 $315.00 REQUIRED: PREPARE A CASH FLOW STATEMENT FOR SUFE CORP. FOR FY 2021 ACCORDING TO THE INDIRECT METHOD AND USE THE FOLLOWING ADDITIONAL INFORMATION 8 ADDITIONAL INFORMATION 9 0 1 1) 2) A $25 M USD NOTE PAYABLE IS RETIRED AT ITS BOOK VALUE OF $25 M USD IN EXCHANGE FOR CASH 2 3) 3 4) 4 5) 5 6) THE ONLY CHANGES EFFECTING RETAINED EARNINGS ARE NET INCOME AND CASH DIVIDENDS PAID OUT NEW EQUIPMENT WAS ACQUIRED IN FY 2021 FOR $ 60.1 M USD IN CASH RECEIVED CASH FOR EQUIPMENT SOLD THAT HAD COST $ 48.8 M USD YIELDING A $2.4M USD GAIN PREPAID EXPENSES RELATE TO OUT OF POCKET EXPENSES ON THE INCOME STATEMENT ALL PURCHASES AND SALES OF MERCHANDISE ARE ON CREDIT