The 2021 and 2020 balance sheets of Gibson Corporation follow. The 2021 income statement is also provided. Gibson had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,200, which had originally cost $12,800 and had a book value of $11,300. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and long-term investments with cash. (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Requirements 1. Prepare the statement of cash flows for Gibson Corporation for 2021 using the indirect method. 2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted or for a net cash outflow.) Operating Activities: Gibson Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities Balance Sheets Gibson Corporation Comparative Balance Sheets A 1 2 3 4 Assets 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance December 31, 2021 and 2020 10 Total current assets 11 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments 15 Total assets 16 17 Liabilities 18 Current liabilities: ad no ble du Income Statement B C A B C 1 Gibson Corporation 2 Income Statement 3 For the Year Ended December 31, 2021 2021 2020 4 Sales revenues cash 5 Less: Cost of goods sold $ 48,500 $ 20,500 6 Gross profit $ 344,000 77,000 $ 267,000 32,300 29,900 7 Less operating expenses: 86,500 93,000 8 Salaries and wages expense $ 25,000 3,000 2,500 9 Depreciation expense 4,700 $ 170,300 $ 145,900 10 Other operating expenses 13,000 11 Total operating expenses $ 42,700 151,000 (30,600) 134,000 (27,400) 12 Operating income $ 224,300 Plus other income and less other 13 expenses: 110,000 0 14 Interest expense $ 400,700 $ 252,500 15 Gain on sale of PP&E 16 Total other income and expenses 17 Income before income taxes 18 Less: Income tax expense $ 9,300 3,900 5,400 $ 218,900 36,500 Print Done Print Done