The 2021 and 2020 balance sheets of Walker Corporation follow. The 2021 income statement is also provided. Walker had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,300, which had originally cost $12,700 and had a book value of $11,400. The company did not issue any notes payable during the year but did issue common stock for $36,000. The company purchased plant assets and long-term investments with cash. (Click the icon to view the income statement.) Requirements (Click the icon to view the balance sheets.) 1. Prepare the statement of cash flows for Walker 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. Operating Activities: Walker 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 Income Statement 2 3 Income Statement For the Year Ended December 31, 2021 4 Sales revenues $ 342,000 5 Less: Cost of goods sold 6 Gross profit 73,000 $ 269,000 7 Less operating expenses: 8 Salaries and wages expense $ 27,000 9 Depreciation expense 4,000 10 Other operating expenses 12,500 11 Total operating expenses $ 43,500 $ 225,500 12 Operating income 13 Plus other income and less other expenses: 14 Interest expense 15 Gain on sale of PP&E 16 Total other income and expenses 17 Income before income taxes 18 Less: Income tax expense 19 Net income $ 9,600 3,900 Print Done 5,700 $ 219,800 36,500 $ 183,300 Balance Sheets 1 2 3 4 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance A Walker Corporation Comparative Balance Sheets December 31, 2021 and 2020 Assets 10 Total current assets 11 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments 15 Total assets 167 16 17 Liabilities B 2021 2020 - $ 48,000 $ 24,000 32,200 29,200 86,000 93,200 3,000 2,900 $ 169,200 $ 149,300 159,000 136,000 (30,100) (27,400) 111,000 0 $ 409,100 $ 257,900 Print Done Balance Sheets 17 Liabilities 18 Current liabilities: 19 Accounts payable 20 Wages payable 21 Interest payable $ 33,400 $ 36,200 2,500 7,200 1,900 0 22 Income taxes payable 5,500 0 23 Other accrued expenses payable 18,400 22,200 24 Total current liablities $ 61,700 $ 65,600 25 26 Long-term liabilities 27 Total liabilities 78,000 111,000 $ 139,700 $ 176,600 28 29 Stockholders' equity 30 Common stock 107,000 71,000 31 Retained earnings 162,400 10,300 32 Total stockholders' equity $ 269,400 $ 81,300 33 34 Total liabilities and equity $ 409,100 $ 257,900 Print Done