Scenario The comparative balance sheet and Income statement of Sign Language Hearing Co Ltd, have just been prepared and presented to the owners by the Company's Accountant The owners are concerned about the movement in the Company's cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners The owners have asked you to assist with the needed clarification and have put forward the following financial i formation Info to be used Sign Language Heari ng Co Ltd Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 188,000 200,000 Accounts Receivable 230,000 200,000 Inventory 350,000 380,00 0 Equipment, net 350,000 220,000 Total Assets 1,118,000 1,000,000 Liabilities Accounts payable 260,000 275,000 Accrued liabilities 95,000 75,000 Income tax payable 6 5, 400 65,400 Bond payable 195,200 105,600 Stockholders' Equity Common Stock 155,500 95,300 Retained earnings 650,450 550,300 Treasury stock (303,550) (166,600) Total li ab ilities and stockholders' equity 1,118,000 1,000,000 Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains Sales revenue 800,000 Gain on sale of equipment 5,000 Total revenues and gains 805,000 Expenses Cost of goods sold 480,000 Salary expense 58,500 Depreciation expense 20,000 Rent expense 65,000 Total expenses 623,500 I ncome before income taxes 181,500 Income tax expense 18,000 Net Profit 163,500 Notes Purchase of equipment 215,000 Cash receipt from sale of equipment 70,000 Issuance of bonds pa ya ble to borrow cash 89,600 Cash receipt from issuance of common stock 60,200 Dividend paid 63,350 Book value of equipment sold 65,000 Purchase of treasury stock 136,950 Requirement prepare a complete statement of cash flows for October 2021 using the indirect method based on the information and guidance provided above

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Scenario: The comparative balance sheet and Income statement of Sign Language Hearing Co Ltd, have just been prepared and presented to the owners by the

Scenario:

The comparative balance sheet and Income statement of Sign Language Hearing Co Ltd, have just been prepared and presented to the owners by the Company's Accountant. The owners are concerned about the movement in the Company's cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. The owners have asked you to assist with the needed clarification and have put forward the following financial i formation.

Info to be used:

Sign Language Hearing Co Ltd
Comparative Balance Sheet
October 31, 2020, and 2021
	2021	2020
Assets
Cash and cash equivalent	188,000	200,000
Accounts Receivable	230,000	200,000
Inventory	350,000	380,000
Equipment, net	350,000	220,000
Total Assets	1,118,000	1,000,000
Liabilities
Accounts payable	260,000	275,000
Accrued liabilities	95,000	75,000
Income tax payable	65,400	65,400
Bond payable	195,200	105,600
Stockholders' Equity:
Common Stock	155,500	95,300
Retained earnings	650,450	550,300
Treasury stock	(303,550)	(166,600)
Total liabilities and stockholders' equity	1,118,000	1,000,000

Sign Language Hearing Co Ltd
Income Statement
Year Ended October 31,2021
Revenues and gains:
Sales revenue	800,000
Gain on sale of equipment	5,000
Total revenues and gains		805,000
Expenses
Cost of goods sold	480,000
Salary expense	58,500
Depreciation expense	20,000
Rent expense	65,000
Total expenses		623,500
Income before income taxes		181,500
Income tax expense		18,000
Net Profit		163,500


Notes
Purchase of equipment		215,000
Cash receipt from sale of equipment		70,000
Issuance of bonds payable to borrow cash		89,600
Cash receipt from issuance of common stock		60,200
Dividend paid		63,350
Book value of equipment sold		65,000
Purchase of treasury stock. 136,950 Requirement: prepare a complete statement of cash flows for October 2021 using the indirect method based on the information and guidance provided above.