Question
Sully Co. had the following financial data related to the year ended December 31: December 31, 2021 2020 Cash $72,740 $163,880 Accounts receivable 135,250 64,220
Sully Co. had the following financial data related to the year ended December 31: December 31, 2021 2020 Cash $72,740 $163,880 Accounts receivable 135,250 64,220 Merchandise inventory 145,000 123,900 Long-term investments 112,000 112,800 Equipment 390,000 184,500 Accumulated depreciation, equipment 220,000 110,000 Accounts payable 166,550 91,000 Income taxes payable 24,000 23,450 Bonds Payable 98,500 125,560 Common shares 295,000 222,000 Retained earnings 150,940 77,290 Sales $413,532 Cost of goods sold $165,000 Depreciation expense 170,000 Other operating expenses 56,431 Interest expense 10,185 Gain on sale of equipment 2,000 399,616 Net Income $13,916 Additional information: There was no gain or loss on the long-term investments sold or the bonds retired. Equipment with an original cost of $125,000 and accumulated depreciation of $60,000 was sold for cash. Equipment was purchased for $330,500. Dividends were paid during the year. Additional shares were issued during the year. REQUIRED: Prepare a statement of cash flows for 2021 using the indirect method. Good form is not required, but all abbreviations must be clear.
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