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Problem 21-2 (Algo) Statement of cash flows; direct method [LO21-3, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of income for

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Problem 21-2 (Algo) Statement of cash flows; direct method [LO21-3, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets canh S 72 35 Accounts receivable 79 80 Short-term investment 30 10 Inventory 79 75 Land 54 65 Duildingo and equipment 510 410 Loud Accumulated depreciation (121) (80) $ 703 595 Liabilities Accounts payable $ 27 $ 35 Salarico payable 4 6 Interest payable 5 2 Income tax payable 6 10 Notes payable 0 20 Bonds payable 150 110 Shareholders' Equity common stock 250 210 Paid-in capital exceso par 145 105 Retained earnings 116 95 $ 703 5 595 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ( in thousanda) Revenues. Sales revenue $ 350 Expenses: Cost of goods sold $ 140 Salaries expenso 53 Depreciation expongo 41 Interest expenso 10 LOs on sale of land 6 Income tax expenso 50 300 Net Income $50 Additional information from the accounting records! a. Land that originally cost $11,000 was sold for $5,000. b. The common stock of Microsoft Corporation was purchased for $20,000 as a short-term Investment not classified as a cash equivalent c. New equipment was purchased for $100,000 cash. d. A $20,000 note was paid at maturity on January 1 e. On January 1, 2021, bonds were sold at their $40,000 face value. 1. Common stock ($40,000 par) was sold for $80,000. 9. Net Income was $50,000 and cash dividends of $30,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (1.e., 10,000 should be entered as 10).) WRIGHT COMPANY Statement of Cash Flows For the year onded December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: Cash outflows: S Net cash flows from operating activities. Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities o $ 0 Net cash flows from operating activities. Cash flows from investing activities: 0 Ner cash flows from investing activities Cash flows from financing activities: 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0

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