Question
Ritter Ltd.'s financial statements showed the following: Statement of Financial Position Information December 31, 2021 2021 2020 Difference Cash $225,700 $135,600 $90,100 Accounts receivable
Ritter Ltd.'s financial statements showed the following: Statement of Financial Position Information December 31, 2021 2021 2020 Difference Cash $225,700 $135,600 $90,100 Accounts receivable 47,000 33,000 14,000 Merchandise inventory 49,000 61,500 (12,500) Long-term investment 25,000 (25,000) Machinery 465,000 385,000 80,000 Accumulated depreciation, (280.000) (210,000) (70.000) machinery Total assets $506,700 $430,100 $76,600 Accounts payable $51,200 $65,600 ($14,400) Bonds payable 56,000 0 56,000 Common shares 200,000 200,000 0 Retained earnings Total liabilities and shareholders' equity 199.500 164.500 35.000 $506,700 $430,100 $76,600 Statement of Income For the Year Ended December 31, 2021 Sales $982,000 Cost of goods sold $705,000 Other expenses 153,000 Depreciation expenses 70.000 928.000 Profit from operations $54,000 Gain on sale of long-term investment 10.000 Profit $64,000 Additional information: 1. The long-term investment was sold at a gain. 2. No machinery was sold during 2021. 3. A cash dividend of $29,000 was declared and paid during the year. Required: Prepare the Statement of Cash Flows using the indirect method.
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