G 1 4 5 6 8 D 1 Exercise 12 The following information is available for Umbrella Corporation for the year ended December 31, 2021: 3 Collection of principal on long term loan to a supplier 40,000 Acquisition of equipment for cash 15,000 Proceeds from the redemption of long-term investment at carrying value 27,000 Issue of common shares for cash 25,000 7 Depreciation expense 25,000 Redemption of bonds payable at amortized cost 24,000 9 Payment of cash dividends 14,000 10 Profit 30,000 11 Purchase of land by issuing bonds payable 40,000 12 12 In addition, the following information is available from the comparative balance sheet for Umbrella at the end of 2020 and 2021: 14 2,021 2.020 15 Cash 102,000 14,000 16 Accounts receivable (net) 20,000 15,000 17 Prepaid insurance 17.000 12.000 Total current assets 134.000 42.000 19 20 Accounts payable 25,000 19,000 21 Salaries payable 4.000 7.000 22 Total current liabilities 29,00 26.000 12 Cash Flow Horizontal Analysis Rabo Analysis Number Styles Cell Eddir 145 X G C D 24 Instructions 25. Prepare Umbrella's cash flow statement for the year ended December 31, 2021, using the indirect method. 26 27 Solution 12 (22-27 min.) 20 29 UMBRELLA CORPORATION 30 Cash Flow Statement Year Ended December 31, 2021 ARER 995 31 Operating activities Profit Adjustments to reconcile profit to net cash provided (used) by operating activities Depreciation Increase in accounts receivable 39 Increase in prepaid insurance Increase in accounts payable Decrease in salaries payable Net cash provided by operating activities 44 Investing activities Collection of long-term loan de fonteine lansat Cash Flow Horizontal Analysis Hata Analysis D E G H4 Decrease in salaries payable Net cash provided by operating activities Investing activities Collection of long-term loan Proceeds from the redemption of long-term investment Purchase of equipment Net cash provided by investing activities Financing activities Issue of common shares Redemption of bonds Payment of dividends Net cash used by financing activities Net Increase in cash Cash, January 1 Cash, December 31