1. Prepare the ENTIRE statement of cash flows under the direct method, including the indirect reconciliation.

Be sure to include an appropriate heading 18 points

BART Company
Balance Sheet
As of December 31,
Account Title	2021	2020
	Ending Balance	Beginning Balance
Assets:
Cash	$ 27,000	$ 20,000
Accounts Receivable	70,000	80,000
Inventory	128,000	120,000
Prepaid Advertising	10,000	11,000
Equipment	530,000	500,000
Accumulated Depreciation	(100,000)	(90,000)
Total Assets	$ 665,000	$ 641,000
Liabilities:
Accounts Payable	$ 75,000	$ 70,000
Wages Payable	30,000	33,000
Bonds Payable	125,000	200,000
Total Liabilities	$ 230,000	$ 303,000
Stockholders Equity
Common Stock	$ 325,000	$ 240,000
Retained Earnings	110,000	98,000
Total Stockholders Equity	$ 435,000	$ 338,000
Total Liabilities and Stockholders Equity	$ 665,000	$ 641,000

Bart Company
Income Statement
For the year ended December 31, 2021
Sales		$ 800,000
Less Expenses
Cost of Goods Sold	$ 600,000
Wages Expense	75,000
Advertising Expense	15,000
Depreciation Expense	10,000
Total Expenses		700,000
Net Income		$ 100,000

Additional Information

1. Net income was $ 100,000 and dividends were $ 88,000.
2. Common stock was issued for ______________.
3. Purchased equipment for _________________________. No equipment was sold.
4. Paid off ______________________ on the bonds payable. No bonds were issued.
5. Declared and paid dividends of $88,000.