P5-3 Preparing a Statement of Cash Flows (Indirect Method) LO5-2, 5-7 a 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: Book Print Q Pences MIKOS INC. Comparative statements of Financial Position December 31 2021 2020 Assets Cash $ 9,600 $ 17,600 Short-term investments 55,200 27,800 Accounts receivable 71,000 28,400 Inventories, at cost 55,200 40,600 Prepaid expenses 4,600 7,200 Land 47,400 73,000 Property, plant, and equipment, net 282,400 182,000 Intangible assets 24,600 29, 200 $550,000 $405,800 Liabilities and Shareholders' Equity Accounts payable $ 17,600 $ 41,200 Income tax payable 7,200 1,600 Accrued liabilities 10,600 -- Long-term notes payable Contributed capital 116,000 162,000 212,000 63,000 Retained earnings 186,600 138,000 $550,000 $400,000 $868,000 MIKOS INC Statement of Earnings For the Year Ended December 31, 2021 Sales Cost of sales Anortization expense-intangible assets Depreciation expense-property, plant, and equipment Operating expenses Interest expense Earnings before income taxes Income tax expense Ret earnings $436,000 4,600 33,600 227,000 12,600 713,800 154,200 46,260 5107,940 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 Cash dividends were declared and paid in 2021 d. New equipment with a cost of $166,600 was purchased for cash, and old equipment was sold at its carrying amount e. Long-term notes of $13,000 were paid in cash, and notes of $33,000 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 reconcilo not earnings to net cash provided by operating activities: Not cash flow from operating activities Cash flows from investing activitios: $ 0 Net cash flow used for investing activities Cash flows from financing activitios: 0 Net cash flow from financing activities 0 0 Cash and short-term investments, beginning of year Cash and short-term investments, end of year $ 0