Exercise 11-10A Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 $ $ 146,750 76,000 90,000 3,000 159,000 89,500 75,500 1,500 455,000 750,000 (415,000) $1,105,750 455,000 645,000 (258,000) $1,167,500 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: 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 $ $ 94,000 6,750 7,000 80,500 13,500 4,500 112,500 225,000 675,000 210,500 $1,105,750 675,000 169,000 $1,167,500 Additional Information for 2021: 1. Net income is $64,000. 2. The company purchases $105,000 in equipment. 3. Depreciation expense is $157,000. 4. The company repays $112,500 in notes payable. 5. The company declares and pays a cash dividend of $22,500. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Decrease in accounts receivable Increase in inventory Increase in prepaid rent Increase in accounts payable Decrease in interest payable Increase in income tax payable $ Net cash flows from operating activities Cash Flows from Investing Activities Purchase of equipment 0 Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends Payment of notes payable 0 Net cash flows from financing activities Net decrease in cash Cash at the beginning of the period Cash at the end of the period $ 0