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 $ 10,300 $ 18,300 Short-term investments 67,100 36,900 Accounts receivable 74,500 31,200 Inventories, at cost 56,600 41,300 Prepaid expenses 5,300 8,600 Land 50,200 76,500 Property, plant, and equipment, net 285,200 185,500 Intangible assets 25,300 30,600 $574,500 $428,900 Liabilities and Shareholders' Equity Accounts payable $ 18,300 $ 42,600 Income tax payable 8,600 2,300 Accrued liabilities 11,300 -0- Long-term notes payable 123,000 176,000 Contributed capital 226,000 66,500 Retained earnings 187,300 141,500 $574,500 $428,900 $889,000 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 $443,000 5,300 34,300 234,000 13,300 729,900 159, 100 47,730 $111,370 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 $167,300 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $16,500 were paid in cash, and notes of $36,500 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: $ 0 Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow used for investing activities Cash flows from financing 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 invest nts, end of year $ 0