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Problem #3 - Statement of Cash Flows Lewando's Cleaners has the following Income Statement for 2021, Balance Sheet for 2021 and 2020 along with the
Problem #3 - Statement of Cash Flows Lewando's Cleaners has the following Income Statement for 2021, Balance Sheet for 2021 and 2020 along with the following additional information related to its operations. Balance Sheet Cash Accounts Receivable Inventory Prepaid Rent 2021 2020 $ 210,000 $ 461,875 635,000 597,800 1,190,050 1,213,500 31,250 29,200 Land Equipment Accumulated Depreciation Intangible Assets 212,500 1,372,250 (217,500) 137,500 237,500 1,247,250 (125,000) 150,000 Income Statement 2021 $9,612,500 Total Assets $3,571,050 $3,812,125 Revenues Expenses: Accounts Payable $ 232,100 $ 524,500 Cost of Sales Interest Payable 137,500 106,250 Operating Expenses Income Tax Payable 6,250 81,250 Depreciation Expense Notes Payable 1,387,500 1,275,000 Amortization Expense Common Stock 1,375,000 1,250,000 Gain on Sale of Land Treasury Stock (200,000) Loss on Sale of Equipment Retained Earnings 632,700 575,125 Interest Expense Income Tax Expense Total Liabilities/SH Equity $3,571,050 $3,812,125 Net Income 5,767,500 2,403,125 112,500 12,500 5,500 (30,000) 131,250 403,550 $ 757,575 Additional Information - 2021 1. Sold Land costing $25,000 for $30,500 in cash resulting in a $5,500 gain on sale of Land 2. Sold Equipment costing $250,000 for $200,000 in cash resulting in a $30,000 loss since the Book Value of the Equipment was $230,000 at the time of sale. 3. Purchased and additional $375,000 in Equipment during the year. Note, this is separate from Equipment sale transaction. 4. Had $112,500 of depreciation expense on the Equipment 5. Had $12,500 of amortization expense on the Intangible Assets 6. Issued an additional Notes Payable of $112,500 7. Issued an additional $125,000 of Common Stock 8. Purchased Treasury Stock of $200,000 9. Declare and pay a cash dividend of $700,000 Required: Please prepare a Statement of Cash Flows for Lewandos for their 2021 fiscal year using the indirect method
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