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Prepare cash flow statement for the year 2021. Note: (i) Net Income can be 5 points calculated by making Retained Earnings Statement or Account, (ii)
Prepare cash flow statement for the year 2021. Note: (i) Net Income can be 5 points calculated by making Retained Earnings Statement or Account, (ii) Depreciation expense of 2021 can be calculated by taking the difference in accumulated depreciation accounts balances of 2020 and 2021. Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85000) $2.739,000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40.000) $2.500.000 Liabilities and Stockholders' Equity Accounts payable $ 104,000 Salaries and wages payable 42,000 Bonds payable 1,150,000 Common stock 1,338,000 I Retained earnings 105 000 Total liabilities and stockholders' equity $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70.000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common stock. Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method
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