P5-3 Preparing a Statement of Cash Flows (Indirect Method) LO5-2, 5-7 The comparative statements of financial position of Mikos Inc. as at December 31, 2020 and 2021 and its statement of earnings for the year ended December 31, 2021 are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2021 2020 Assets Cash $ 10,200 $ 18,200 Short-term investments 65,400 35,600 Accounts receivable 74,000 30,800 Inventories, at cost 56,400 41,200 Prepaid expenses 5,200 8,400 Land 49,800 76,000 Property, plant, and equipment, net 284,800 185,000 Intangible assets 25,200 30,400 $ 571,000 $425,600 Liabilities and Shareholders' Equity Accounts payable $ 18,200 $ 42,400 Income tax payable 8,400 2,200 Accrued liabilities 11,200 -0- Long-term notes payable 122,000 174,000 Contributed capital 224,000 66,000 Retained earnings 187,200 141,000 $ 571,000 $ 425,600 $886,000 MIKOS INC. Statement of Earnings For the Year Ended December 31, 2021 Sales Cost of sales Amortization expense-intangible assets Depreciation expense-property, plant, and equipment Operating expenses Interest expense Earnings before income taxes Income tax expense Net earnings $ 442,000 5,200 34,200 233,000 13,200 727,600 158,400 47,520 $ 110,880 Additional information is as follows: a. Land was sold for cash at its carrying amount b. The short-term investments will mature in February 2022. C. Cash dividends were declared and paid in 2021. d. New equipment with a cost of $167,200 was purchased for cash, and old equipment was sold at its carrying amount e. Long-term notes of $16,000 were paid in cash, and notes of $36,000 were converted to shares. Additional information is as follows: a. Land was sold for cash at its carrying amount. b. The short-term investments will mature in February 2022. C. Cash dividends were declared and paid in 2021. d. New equipment with a cost of $167,200 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $16,000 were paid in cash, and notes of $36,000 were converted to shares. Required: 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2021 by using the indirect method. (Negative answers should be indicated by a minus sign.) MIKOS INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net earnings to net cash provided by operating activities: $ Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 Cash and short-term investments, beginning of year Cash and short-term investments, end of year $