Check my work A company reports net income of $48,000. Included in that number is depreciation expense of $6,500 and a loss on the sale of land of $4,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $18,000, a decrease in inventory of $11,500, and an increase in accounts payable of $38,000. 10 points Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Skipped eBook Statement of Cash Flows (partial) Cash flows from operating activities: Hint Print Adjustments to reconcile net income to net cash flows from operating activities: References Net cash flows from operating activities Income Statement For the year ended December 31, Year 2 Net sales $1,875,000 Expenses: Cost of goods sold $1,080.000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense Total expenses 1,766,000 Net income $ 109,000 points Skipped bo nie to pl w eBook Selected Balance Sheet Data December 31 Increase (I) Hint Year 2 $ 105,000 45, 300 78.000 3.300 48.000 5,300 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 1 $86,500 50,500 56.500 5.600 38.500 11,500 Decrease (D) $18,500 (1) 5,200 (D) 21,500 (1) 2,300 (D) 9,500 (1) 6,200 (D) Print References Required: Prepare the operating activities section of the statement of cash flows for the company using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 2 Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities $365,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold $215,000 Operating expenses 66,000 Depreciation expense 16,600 Income tax expense 25,000 Total expenses Net income points Skipped 322,600 $ 42.400 eBook Print ALLIANCE TECHNOLOGIES Selected Balance sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 6,600 Increase in inventory 13,600 Decrease in prepaid rent 9.600 Increase in salaries payable 5,600 Decrease in accounts payable 8.600 Increase in income tax payable 22.400 References Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) ALLIANCE TECHNOLOGIES Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adiustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities $ 0 points VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $2,576,000 Expenses: Cost of goods sold $1,550,000 Operating expenses 778,000 Depreciation expense 19,000 Loss on sale of land 7,200 Interest expense 11,000 Income tax expense 40.000 Total expenses 2,405,200 Net income $ 170, 800 Skipped eBook VIDEO PHONES, INC. Balance Sheets December 31 Print 2021 2020 References $152, 320 72.200 105,000 8,880 $ 77,560 52,000 127,000 4,440 97,000 202,000 254.000 (59,400) $832,000 224.000 202,000 (40,400) $646,600 Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land 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: Common stock Retained earnings Total liabilities and stockholders' equity $ 58,800 5,200 14,200 $ 73,000 8.400 13,200 269,000 217,000 220,000 264,800 $832,000 220,000 115,000 $646,600 Additional Information for 2021: 1. Purchase investment in bonds for $97.000. 2. Sell land costing $22,000 for only $14,800, resulting in a $7,200 loss on sale of land. 3. Purchase $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,000. 07 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) points VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Skipped Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: eBook Print References Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities