Prepare statement of cash flows for 2021 using the indirect method.
AliBee Ltd. financial statements as at December 31, 2021 appears below: AliBee Ltd. Balance Sheet As at December 31 Cash Investments - fair value through profit or loss Accounts receivable (net) Inventory Property, plant and equipment including leased assets Accumulated depreciation Patent (net) Investment in associate 2021 91,000 11,000 406,000 501,000 1,645,000 -412,000 140,000 465,000 $ 2,847,000 2020 Change 85,000 $ 6,000 13,000 $ (2,000) 374,000 $ 32,000 522,000 $ (21,000) 1,344,000 $ 301,000 -389,000 $ (23,000) 162,000 $ (22,000) 312,000 $ 153,000 $ 2,423,000 Accounts payable Income taxes payable Lease liability Bonds payable Deferred tax liability Common shares Preferred shares Retained earnings $ 74,000 $ 77,000 $ (3,000) 12,000 16,000 $ (4,000) 93,000 0 $ 93,000 608,000 625,000 $ (17,000) 396,000 442,000 $ (46,000) 329,000 239,000 $ 90,000 400,000 380,000 $ 20,000 935,000 644,000 $ 291,000 $ 2,847,000 $ 2,423,000 AliBee Ltd. Statement of Comprehensive Income For the year ended December 31, 2021 Sales revenue Cost of goods sold Gross profit $ 3,218,575 1,649,125 1,569,450 Depreciation expense Patent impairment Other expenses Income from operations 318,700 40,000 735,750 475,000 Interest expense-bonds Interest expense-lease liability Investment income - associate Income before income tax Income tax expense Net income 36,000 4,500 288,000 722,500 293,000 429,500 Other comprehensive income 0 Comprehensive income $ 429,500 Additional information: 1. AliBee has adopted a policy of classifying cash inflows and outflows from interest and dividends as operating activities. 2. None of the investments reported at FVTPL were purchased or sold in the current year. 3. AliBee accounts for its investment in an associate using the equity method. 4. The company nets many items to "Other expenses" such as gains and losses on fixed asset sales. 5. During the year, AliBee leased a right-of-use asset valued at $100,000. The payment made on the lease occurred just after the commencement date. 6.90,000 common shares and 10,000 preferred shares were issued to acquire $110,000 of property, plant, and equipment. 7. AliBee successfully defended its right to one of its patents. Related expenditures totalled $18,000. 8. The decrease in the bond payable was due to the amortization of the premium. 9. Property, plant, and equipment costing $420,000 was sold for $75,000. Ali Bee Ltd. Statement of Cash Flows For the year-ended December 31, 2021 Cash flows from operating activities Adjustments for: Depreciation Patent impairment Interest expense Income tax expense Investment income from associate Gain/loss on sale of fixed assets Gain/Loss on investments at fair value through profit or loss Increase in accounts receivable Decrease in inventory Decrease in accounts payable Cash generated from operating activities Dividends received from associate Cash paid for interest Cash paid for dividends Cash paid for taxes Net cash used in operating activities Cash flows from investing activities Proceeds from sale of property, plant and Acquired property, plant and equipment Payment of legal costs defending the Net cash used in investing activities Cash flows from financing activities Repayment of lease liability Net cash from financing activities Net increase in cash Cash, January 1, 2021 Cash, December 31, 2021 6,000 85.000 $91,000
