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Prepare a statement of cash flow using the indirect method. DEF Industries Comparative Balance Sheets December 31, 2021 and 2020 2021 2020 Assets: Cash $
Prepare a statement of cash flow using the indirect method.
DEF Industries Comparative Balance Sheets December 31, 2021 and 2020 2021 2020 Assets: Cash $ 2,350,000 $ 1,125,000 Accounts receivable 2,250,000 1,350,000 2,700,000 1,575,000 Inventory Land 1,675,000 1,800,000 Building 2,700,000 2,700,000 (900,000) Less: Accumulated depreciation (810,000) Equipment 8,550,000 (1,575,000) 3,600,000 6,750,000 (1,440,000) Less: Accumulated depreciation Patent 4,500,000 $ 21,350,000 $ 17,550,000 Liabilities: $ 1,900,000 $ 1,350,000 Accounts payable Accrued expenses payable 900,000 675,000 Bond Payable 450,000 Shareholders' Equity: Common stock 9,510,000 9,000,000 2,280,000 2,025,000 Paid-in capital-excess of par Retained earnings 6,310,000 4,500,000 $ 21,350,000 $ 17,550,000 Additional information from the accounting records: a. During 2021, equipment with a cost of $800,000 (90% depreciated) was sold for $45,000. b. The Statement of Shareholders' Equity reveals reductions of $765,000 and $1,250,000 for stock dividends and cash dividends, respectively. c. Net income for the year was $3,825,000. d. Land was sold for $400,000Step by Step Solution
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