Question 2

The following information is taken from Karen Corporation's financial statements:

		December 31
		2021			2020
Cash		$ 74,340			$ 31,860
Accounts receivable		120,360			94,400
Allowance for doubtful accounts		(5,310)			(3,658)
Inventory		188,800			206,500
Prepaid expenses		8,850			8,024
Land		118,000			70,800
Buildings		346,920			287,920
Accumulated depreciation		(37,760)			(15,340)
Patents		23,600			41,300
		$837,800			$721,806
Accounts payable		$ 106,200			$ 99,120
Accrued liabilities		63,720			74,340
Bonds payable		147,500			70,800
Common stock		118,000			118,000
Retained earningsappropriated		94,400			11,800
Retained earningsunappropriated		325,680			357,186
Treasury stock, at cost		(17,700)			(9,440)
		$837,800			$721,806

		For 2021 Year
Net income		$92,394
Depreciation expense		22,420
Amortization of patents		5,900
Cash dividends declared and paid		41,300
Gain or loss on sale of patents		none

Prepare a statement of cash flows for Karen Corporation for the year 2021. (Use the indirect method.)