Preparing the statement of cash flows-indirect method with noncash transactions The 2021 comparative balance sheet and income statement of All Wired, Inc., follow. ALL WIRED, INC. Comparative Balance Sheet December 31, 2021 and 2020 Current assets: Cash and cash equivalents Accounts receivable Inventories 2021 Increase 2020 (Decrease) $26,700 $15,600 $11,100 $26,500 $25,300 $1,200 $79,900 $91,900 ($12,000) ALL WIRED, INC Income Statement Year Ended December 31, 2021 Revenues Sales revenue Interest revenue Total revenues Expenses: $438,000 $8,500 $446,500 Cost of goods sold $209,200 Plant assets: Salary expense $72,400 Land $35,500 $11,000 $24,500 Depreciation expense $14,500 Equipment, net $102,900 $90,700 $12,200 Other operating expense $10,000 Total assets $271,500 $234,500 $37,000 Interest expense $21,500 Income tax expense $19,400 Current liabilities: Accounts payable Accrued liabilities Long-term liabilities: Notes payable Total expenses $347,000 $35,600 $30,500 $5,100 $28,900 $30,600 ($1,700) Net income $99,500 $77,000 $103,000 ($26,000) Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $88,200 $64,300 $23,900 $41,800 $6,100 $35,700 $271,500 $234,500 $37,000 Additionally, All Wired purchased land of $24,500 by financing it 100% with long-term notes payable during 2021. During the year, there were no sales of land or enuinment no additional issuances of notes navable no retirements of stock and no treasury stock transactions Requirements 1. Prepare the 2020 statement of cash flows, formatting operating activities by the indirect method. 2 How will what you learned in this problem help you evaluate an investment?