From the following information prepare a statement of cash flows on the indirect method for Wishful Thinking College, a not-for-profit college, for the year ended 12/31/21. Make sure you include all required disclosures.

Increase in net assets $1,000,000

Increase in cash 855,000

Increase in Investment Income Receivable 8,000

Increase in student receivables 32,000

Decrease in supplies inventory 5,000

Increase in accounts payable 100,000

Decrease in deferred tuition revenue 20,000

Included in the change in net assets were the following items:

Cash gifts for scholarships $100,000

Cash gifts for equipment acquisition 10,000

Cash gifts for permanent endowment 500,000

Gift of land 300,000

Reclassifications of temporarily restricted amounts 80,000

Donated services of retired professor teaching

2 online classes per term valued at 25,000

The controller provided analyses of the following accounts:

Property, Plant, and Equipment 1/1/21 $5,000,000

• Disposals of equipment (110,000)
• (Sold for $93,000)
• Gift of land 300,000
• Construction costs paid to XYZ Construction

for new building (used proceeds of a $400,000

unsecured L.T. Note and other cash on hand) 500,000

• Depreciation expense (175,000)

Property, Plant, and Equipment 12/31/21 $5,515,000

Investments 1/1/21 $1,000,000

Purchases 125,000

Sale of investments (sold for $110,000) (150,000)

Unrealized gain to adjust to FMV 100,000

Investments 12/31/21 $1,075,000

example

Statement of Activities
For year ended December 31, 20XX
	Temporarily	Permanently
Unrestricted	Restricted	Restricted	Total