The 2021 and 2020 balance sheets of Wright Corporation follow. The 2021 income statement is also provided. Wright had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,500, which had originally cost $13,300 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 $33,000. The company purchased plant assets and long-term investments with cash. B: (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 Wright 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. A B B 1 Wright Corporation 2 Income Statement 3 For the Year Ended December 31, 2021 $ 343,000 4 Sales revenues 5 Less: Cost of goods sold 75,000 6 Gross profit $ 268,000 7 Less operating expenses: 8 Salaries and wages expense $ 26,000 9 Depreciation expense 5,200 10 Other operating expenses 14,000 11 Total operating expenses $ 45,200 12 Operating income $ 222,800 13 Plus other income and less other expenses: 14 Interest expense $ 9,500 15 Gain on sale of PP&E 4,100 16 Total other income and expenses 5,400 17 Income before income taxes $ 217,400 18 Less: Income tax expense 36,100 19 Net income 181,300 A B 1 Wright Corporation Comparative Balance Sheets 2 3 December 31, 2021 and 2020 4 Assets 2021 2020 5 Current assets: 6 Cash 51,000 $ 21,500 7 Accounts receivable 31,900 29,300 8 Inventory 86,100 94,800 9 Prepaid insurance 3,000 2,500 10 Total current assets $ 172,000 $ 148,100 11 12 Property, plant, and equipment 155,000 137,000 13 Less: Accumulated depreciation (30,700) (27,400) 14 Investments 112,000 0 15 Total assets $ 408,300 $ 257,700 16 17 Liabilities 18 Current liabilities: 19 Accounts payable $ 33,800 $ 36,600 2,800 7,000 20 Wages payable 21 Interest payable 2,000 0 22 Income taxes payable 6,200 0 23 Other accrued expenses payable 18,900 22,200 24 Total current liablities 63,700 $ 65,800 25 26 Long-term liabilities 78,000 112,000 27 Total liabilities $ 141,700 $ 177,800 28 29 Stockholders' equity 30 Common stock 108,000 75,000 31 Retained earnings 158,600 4,900 32 Total stockholders' equity $ TA 266,600 $ 79,900 33 34 Total liabilities and equity $ 408,300 $ 257,700 Requirement 1. Prepare the statement of cash flows for Wright Corporation for 2021 using the indirect method. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted or for a net cash outfiow.) Wright Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Operating Activities: Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities Investing Activities: Net cash provided by (used for) investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash, beginning of the year Cash, end of the year Requirement 2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response. Wright Corporation's cash flows look provided by operating activities. The investing activities They had some cash. These activities included The financing activities cash vand The corporation also