d D e Income Statement 4 Sales revenues ke ts 5 Less: Cost of goods sold 6 Gross profit 7 Less operating expenses: 8 Salaries and wages expense $ 28,000 9 Depreciation expense 5,200 t 10 Other operating expenses 14,500 sta 11 Total operating expenses 12 Operating income 13 Plus other income and less other expenses: 14 Interest expense A 15 Gain on sale of PP&E 16 Total other income and expenses mts 17 Income before income taxes 18 Less: Income tax expense $ 9,100 4,300 $ 343,000 77,000 $ 266,000 $ 47,700 $ 218,300 4,800 $ 213,500 35,500 -X h t Balance Sheets Assets 4 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance en 10 Total current assets es 11 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments ng 15 Total assets 16 en 17 18 Current liabilities: Liabilities 2021 2020 $ 49,500 $ 23,500 31,700 29,600 86,500 92,900 3,000 2,500 $ 170,700 $ 148,500 150,000 132,000 (30,500) (27,500) 115,000 0 $ 405,200 $ 253,000 21 an 2021. Dayabl lick the Balance Sheets 17 18 Current liabilities: Liabilities -X gner ha book w ng-term remen pare th 19 Accounts payable $ 33,700 $ 36,400 luate ti 20 Wages payable 2,500 7,500 21 Interest payable 2,600 0 22 Income taxes payable 5,800 0 iremen 23 Other accrued expenses payable 18,600 22,100 are the s 24 Total current liablities $ 63,200 $ 66,000 net cas 25 26 Long-term liabilities 27 Total liabilities 79,000 113,000 $ 142,200 $ 179,000 perating 28 29 Stockholders' equity justmen 30 Common stock 31 Retained earnings 101,000 72,000 162,000 2,000 ng en 29 Stockholders' equity 30 Common stock 31 Retained earnings 32 Total stockholders' equity 33 34 Total liabilities and equity 101,000 72,000 162,000 2,000 $ 263,000 $ 74,000 $ 405,200 $ 253,000 The 2021 and 2020 balance sheets of Wagner Corporation follow. The 2021 income statement is also provided. Wagner had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,700, which had originally cost $13,600 and had a book value of $11,400. The company did not issue any notes payable during the year but did issue common stock for $20,000. The company purchased plant assets and long-term investments with cash (Click the icon to view the income statement) Requirements Click the icon to view the balance sheets.) 1. Prepare the statement of cash flows for Wagner Corporation for 2021 using the indirect method. 2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response. Operating Activities: Wagner Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Adjustments to reconcile net income to cash basis Net hot to s