Question
Lala land Company has the following financial information: Balance Sheets Dec. 31, 2020 Dec. 31, 2021 Cash 152,400 134,500 Accounts receivable 33,200 35,000 Inventory 200,600
Lala land Company has the following financial information:
Balance Sheets | ||
| Dec. 31, 2020 | Dec. 31, 2021 |
Cash | 152,400 | 134,500 |
Accounts receivable | 33,200 | 35,000 |
Inventory | 200,600 | 175,500 |
Prepaid Expenses | 22,000 | 20,000 |
Long term Investments | 300,000 | 420,000 |
Plant, Property and Equipment (net) | 250,000 | 205,000 |
Accounts payable | 98,600 | 105,000 |
Short term notes payable | 62,000 | 40,000 |
Taxes payable | 35,600 | 13,500 |
Long term liabilities | 134,000 | 140,000 |
Stockholders Equity | 628,000 | 691,500 |
Income statement |
|
Sales revenue | $ 570,000 |
Cost of goods sold | 300,000 |
Gross profit | $ 270,000 |
Depreciation Expense | 13,000 |
Other operating costs | 166,500 |
Loss on sale of plant assets | 2,000 |
Net Income for the year | $ 88,500 |
Required: Calculate the cash flow from operating activities, for the year ended December 31, 2021, using the Indirect method.
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