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 e. year ended December 31, 2021 are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2021 2020 Assets Cash $ 10,400 $ 18,400 Short-term investments 68,800 38,200 Accounts receivable 75,000 31,600 Inventories, at cost 56,800 41,400 Prepaid expenses 5,400 8,800 Land 50,600 77,000 Property, plant, and equipment, net 285,600 186,000 Intangible assets 25,400 30,800 $578,000 $432,200 Liabilities and Shareholders' Equity Accounts payable $ 18,400 $ 42,800 Income tax payable 8,800 2,400 Accrued liabilities 11,400 -- Long-term notes payable 124,000 178,000 Contributed capital 228,000 Retained earnings 67,000 187,400 142,000 $578,000 $432,200 ences $892,000 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 $444,000 5,400 34,400 235,000 13,400 732,200 159,800 47,940 $111,860 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 $167,400 was purchased for cash, and old equipment was sold at its carrying amount e Long-term notes of $17,000 were paid in cash, and notes of $37,000 were converted to shares GLOW 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: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization expense ok rint Ferences 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 from financing activities 0 0 Cash and short-term investments, beginning of year Cash and short-term investments, end of year $ 0 Gew Type here to search O BI