PURCELLS, INC. COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2021
	2020			2021
Sales	$640,000			$ 410,000
Less: Cost of goods sold	310,000			190,000
Gross profit on sales	330,000			220,000
Less: Operating expenses (including depreciation of $28,000 in 2020 and $29,000 in 2021)	260,000			250,000
Loss on sale of marketable securities	0			4,000
Net income (loss)	$ 70,000			$ (34,000)
PURCELLS, INC. COMPARATIVE BALANCE SHEETS
	December 31,
	2020		2021
Assets
Cash and cash equivalents	$22,000		$60,000
Marketable securities	27,000		12,000
Accounts receivable	40,000		35,000
Inventory	120,000		128,000
Plant and equipment (net of accumulated depreciation)	250,000		241,000
Totals	$459,000		$476,000
Liabilities & Stockholders Equity
Accounts payable	$50,000		$70,000
Accrued expenses payable	16,000		14,000
Notes payable	235,000		237,000
Capital stock (no par value)	108,000		143,000
Retained earnings	50,000		12,000
Totals	$459,000		$476,000

Additional Information

The following information regarding the companys operations in 2021 is available from the companys accounting records.

1. Early in the year the company declared and paid a $4,000 cash dividend.
2. During the year marketable securities costing $15,000 were sold for $11,000 cash, resulting in a $4,000 nonoperating loss.
3. The company purchased plant assets for $20,000, paying $8,000 in cash and issuing a note payable for the $12,000 balance.
4. During the year the company repaid a $10,000 note payable, but incurred an additional $12,000 in long-term debt as described in 3.
5. The owners invested $35,000 cash in the business as a condition of the new loans described in paragraphs 3 and 4.

Question:

Prepare a formal statement of cash flows for 2021, including a supplementary schedule of noncash investing and financing activities. (Use the format illustrated in Exhibit 138. Cash provided by operating activities is to be presented by the indirect method.)