Prepare statement of cash flows using the indirect method. The income statement for 2021 and the balance sheels for 2021 and 2020 are presented for Hartmann Induc (Click the icon to view the income statement) (Click the icon to view the balance sheets) (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hartmann industries, Inc. for the year ended December 31, 2021, using the indirect method Operating Activities: Net income Hartmann Industries, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Adjustments to reconcile net income to cash basis Depreciation expense Gain on sale of plant asset Decrease in accounts receivable: Decrease in inventory Increase in prepaid insurance Increase in accounts payable Decrease in wages payable Increase in interest payable Increase in taxes payable Increase in other accrued expenses payable Net cash provided by (used for) operating activities 171010 54200 35001 Additional information Addtional information tow a. Sold plant asset for $4,200 The anginal cost of this plant asset was $10,900 and he $10,200 of scumaid dipreciation associated with t b. Paid $8,000 on the bonds payable, issued $52.000 of new bond paya 6. Declared and paid cash didends of $13.500 d. Purchased new investment for $14,000 Paid cesh Purchased new equipment for $40,900. Paid cash Print Done Clear all Chad 2 3 Hartmann Industries, Inc. Income Statement For the Year Ended December 31, 2021 4 Sales revenues 5 Less: Cost of goods sold 6 Gross profit $ 960,000 383,000 $577,000 7 Less operating expenses: 8 Salaries and wages expense $ 184,000 6 Insurance expense 10,500 10 Depreciation expense 54,200 11 Other operating expenses 82,000 12 Total operating expenses 330,700 $ 246,300 13 Operating income 14 Plus other income and less other expenses: 15 Interest expense 16 Gain on sale of PP&E 17 Total other income and expenses 18 Income before income taxes $ SA 5,500 3,500 2,000 $ 244,300 4 Sales revenues 5 Less: Cost of goods sold 6 Gross profit 7 Less operating expenses: 8 6 Salaries and wages expense Insurance expense Depreciation expense 10 11 Other operating expenses 12 Total operating expenses 13 Operating income 14 Plus other income and less other expenses: 15 Interest expense 16 Gain on sale of PP&E 17 Total other income and expenses 18 Income before income taxes 19 Less: Income tax expense 20 Net income $ 960,000 383,000 $ 577,000 69 $ 184,000 10,500 54,200 82,000 330,700 $ 246,300 $ 5,500 3,500 2,000 $ 244,300 73,290 $ 171,010 1 2 3 Hartmann Industries, Inc. Comparative Balance Sheets December 31, 2021 and 2020 4 Assets 2021 2020 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance 10 10 Total current assets 11 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments 15 Total assets 16 17 18 Current liabilities: Liabilities $ 476,000 $ 288,000 76,000 130,000 332,000 211,000 8,000 6,500 69 $ 892,000 $ 635,500 69 $ 605,000 $ 555,000 (155,000) (111,000) 91,000 77,000 $ 1,433,000 $ 1,156,500 $ EA 18 Current liabilities: 19 Accounts payable (inventory purchases) 20 Wages payable 21 Interest payable 22 Income taxes payable 23 Other accrued expenses payable 24 Total current liablities 25 222 26 Long-term liabilities 27 Total liabilities 28 16,000 56,000 $ 36,000 17,200 1,900 500 64,290 12,000 6,200 3,700 144,390 $ 69,400 $ EA $ 69 65,000 21,000 209,390 $ 90,400 29 Stockholders' equity 30 Common stock 31 Retained earnings 32 Total stockholders' equity 33 34 Total liabilities and equity $ 606,000 $ 606,000 617,610 460,100 $ 1,223,610 $ 1,066,100 $ 1,433,000 $ 1,156,500