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Prepare the statement of cash flows using the indirect method. Disclose any noncash transac- tions in an accompanying note. Net sales Gain on sale
Prepare the statement of cash flows using the indirect method. Disclose any noncash transac- tions in an accompanying note. Net sales Gain on sale of investment Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income E-PHONES, INC. Income Statement For the year ended December 31, 2021 Assets Current assets: Cash Accounts receivable Inventory Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Accounts payable Income tax payable Long-term liabilities: Bonds payable Stockholders' equity. Common stock Liabilities and Stockholders' Equity Current liabilities: $1,100,000 450,000 25,000 217.000 E-PHONES, INC. Balance Sheets December 31, 2021 and 2020 2021 $ 32,000 32,000 100,000 2020 $2,200,000 5,000 1,792.000 $ 413,000 0 50,000 280,000 180,000 200,000 140,000 0 $ 48,000 40,000 70,000 (53,000) (28,000) $591,000 $500,000 Retained earnings Total liabilities and stockholders' equity $591,000 $ 52,000 $ 62,000 55,000 12,000 Increase (1) or Decrease (D) $ 16,000 (D) 8,000 (D) 30,000 $ 10,000 (D) 43,000 200,000 200,000 (D) 200,000 100,000 100,000 284,000 126,000 158,000 $500,000 50,000 (D) 100.000 ( 60,000 ( 25,00000 Additional Information for 2021: 1. Sold an investment in stock costing $50.000 for $55.000, resulting in a $5,000 gain on sale of investment 2. Purchased $100,000 in land, issuing $100,000 of common stock as payment. No cash was exchanged in the transaction 3. Purchased equipment for $60,000 cash 4. Retired the $200,000 balance in bonds payable at the beginning of the year. 5. Declared and paid a cash dividend of $255.000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transa tions in an accompanying note.
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