Classic Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$:

$($Click the icon to view the transactions.$)$

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Requirement $3.$ Prepare Classic's statement of cash flows for the year ended December $31,2021.$ Format cash flows from operating activities using the indirect method. $($Use parentheses or a minus sign for numbers t

net decrease in cash. Enter $"0"$ for zero balances.$)$

Classic Motors, Inc.

Statement of Cash Flows $($Indirect Method$)$

Year Ended December $31,2021$

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to

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net cash provided by $($used for$)$ operating activities:

Cash flows from investing activities:

Purchase of equipment

$$(220,000)$

Net cash provided by $($used for$)$ investing activities

On January $1,2021,$ Classic issued its common stock for $$510,000.$ Early in January,

Classic made the following cash payments:

a$.$ $$220,000$ for equipment

b$.$ $$243,000$ for inventory $($nine cars at $$27,000$ each$)$

c$.$ $$25,000$ for $2021$ rent on a store building

In February, Classic purchased three cars for inventory on account. The cost of this

inventory was $$117,000($ $$39,000$ per car$).$ Before year$-$end, the company paid off

$$58,500$ of this debt. The company uses the first$-$in$,$ first$-$out $($FIFO$)$ method to account

for its inventory.

During $2021,$ Classic sold eleven autos for a total of $$649,000.$ Before year$-$end, it

had collected $90\%$ of this amount.

The business employs two people. The combined annual payroll is $$151,000,$ of

which Classic owes $$3,000$ at year$-$end. At the end of the year, the company paid income

taxes of $$22,000.$

Late in $2021,$ Classic declared and paid cash dividends of $$15,000.$

For equipment, Classic uses the straight$-$line depreciation method, over five years,

with zero residual value.

Cash flows from financing activities:

Net cash provided by $($used for$)$ financing activities

Net increase $($decrease$)$ in cash