Prepare and Interpret a Statement of Cash Flows - A comparative balance sheet for Tinker Company containing data for the last two years is as follows: Tinker Company Comparative Balance Sheet This Year Last Year $ 49,000 35,800 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets 322,000 320,200 15,800 707,000 338,750 223,500 9,250 607,300 1,252,500 954,000 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment 323,700 292,150 928,800 661,850 68,350 105,500 Long-term investments Long term notes receivable Total assets 73,500 41,750 $ 1,416,400 $ 1,777,650 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities 456,600 20,600 84,050 561,250 377,500 938,750 $ 298,500 33,150 69,800 401,450 240.500 641.950 Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 572,000 266,900 838,900 513,500 260.950 774,450 1,777,650 1,416,400 The following additional information is available about the company's activities during this year: The company declared and paid a cash dividend this year. Bonds with a principal balance of $203,500 were repaid during this year. Equipment was sold during this year for $41,750. The equipment had cost $92,000 and had $36,200 in accumulated depreciation on the date of sale. Long-term investments were sold during the year for $82,000. These investments had cost $37,150 when purchased several years ago. The company did not collect any of the long-term note receivable. The company did not retire any stock. d. e. f. The company reported net income this year as follows: 1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) 2. What problems relating to the company's activities are revealed by the statement of cash flows that you have prepared? Prepare and Interpret a Statement of Cash Flows - A comparative balance sheet for Tinker Company containing data for the last two years is as follows: Tinker Company Comparative Balance Sheet This Year Last Year $ 49,000 35,800 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets 322,000 320,200 15,800 707,000 338,750 223,500 9,250 607,300 1,252,500 954,000 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment 323,700 292,150 928,800 661,850 68,350 105,500 Long-term investments Long term notes receivable Total assets 73,500 41,750 $ 1,416,400 $ 1,777,650 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities 456,600 20,600 84,050 561,250 377,500 938,750 $ 298,500 33,150 69,800 401,450 240.500 641.950 Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 572,000 266,900 838,900 513,500 260.950 774,450 1,777,650 1,416,400 The following additional information is available about the company's activities during this year: The company declared and paid a cash dividend this year. Bonds with a principal balance of $203,500 were repaid during this year. Equipment was sold during this year for $41,750. The equipment had cost $92,000 and had $36,200 in accumulated depreciation on the date of sale. Long-term investments were sold during the year for $82,000. These investments had cost $37,150 when purchased several years ago. The company did not collect any of the long-term note receivable. The company did not retire any stock. d. e. f. The company reported net income this year as follows: 1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) 2. What problems relating to the company's activities are revealed by the statement of cash flows that you have prepared