The 2021 and 2020 balance sheets of Wallace Corporation follow. The 2021 income statement is also provided. Wallace had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,600, which had originally cost $12.800 and had a book value of $11,200. The company did not issue any notes payable during the year but did issue common stock for $32,000. 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.) X Income statement Requirements 1. Prepare the statement of cash flows for Wallace Corporation for 2021 using the indirect method. 2. Evaluate the company's cash flows for the year. Discuss each of the celegories of cash flows in your response. TICUM SEM 3 For the Year Ended December 31, 2021 4 Sales revenues S 345,000 RENE 5 Less: Cost of goods sold 78,000 Statement of Cash Flows (Indirect Method) 6 Gross profit $ 267,000 For the Year Ended December 31, 2021 7 Loss operating expenses: Operating Activities: 8 Salarles and wages expense $ 27.500 Depreciation expense 5.000 Adjustments to reconcile net income to cash basis: 10 Other operating expenses 15,000 11 Total operating expenses S 47,500 12 Operating income S 219,500 Plus other income and less other 13 expenses: Interest expense $ 9.700 9 14 15 Gain on sale of PP&E 4.400 16 Total other Income and expenses 5,300 17 Income before income taxes S 214,200 S 35,600 18 Less: Income tax expenso 19 Net income S 178,600 S Net cash provided by (used for) operating activities The 2021 and 2020 balance sheets of Wallace Corporation follow. The 2021 Income statement is also provided. Wallace had no noncash Investing and financing transactions during 2021. During the year, the company sold equipment for S15,600, which had originally cost $12,800 and had a book value of $11,200. The company did not issue any notes payable during the year but did issue common stock for $32,000. 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.) - X Requirements Balance sheets 1. Prepare the statement of cash flows for Wallace 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. 4 Assets 2021 2020 5 Current assets: TORE 6 Cash $ 50,500 $ Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 7 Accounts receivable 32.200 21,000 29,200 94,200 8 Inventory 86.800 Operating Activities: 3.100 2,700 9 Prepaid insurance 10 Total current assets $ 172.600 $ 147,100 Adjustments to reconcile net income to cash basis: 11 155.000 132,000 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14. Investments (30,400) (27.000) 114.000 0 S 411,200 $ 252.100 15 Total assets 16 17 Liabilities 18 Current liabilities: $ S 33.700 $ 36,300 19 Accounts payable 20 Wages payable 21 interest payable 2.500 7.700 Net cash provided by (used for) operating activities 2.900 0 Balance sheets 17 Liabilities 18 Current liabilities: $ 33,700 $ 36,300 2,500 7,700 19 Accounts payable 20 Wages payable 21 Interest payable 22 Income taxes payable 2,900 0 6,100 0 23 Other accrued expenses payable 18,900 22,300 24 Total current liablities $ 64,100 $ 66,300 25 26 Long-term liabilities 79,000 111,000 27 Total liabilities $ 143,100 $ 177,300 28 29 Stockholders' equity 30 Common stock 105,000 73,000 31 Retained earnings 163,100 1,800 32 Total stockholders' equity $ 268,100 $ 74,800 33 34 Total liabilities and equity $ 411,200 $ 252,100 The 2021 and 2020 balance sheels of Wallace Corporation follow. The 2021 income statement is also provided. Wallace had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for S15,600, which had originally cost $12,800 and had a book value of $11,200. The company did not issue any notes payable during the year but did issue common stock for $32,000. 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 Wallace 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. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Operating Activities: Cash from issuing common stock Depreciation expense Dividends paid Gain on sale of equipment Issuance of common stock Net income Proceeds from bond issuance Proceeds on sale of plant equipment Purchase of equipment Purchase of stock investments Clear all Check