Question
The accounting records of Prosper Inc. provided the following data for the current year. Balance Sheet, December 31 2020 2021 Cash $ 800 $ 2,120
The accounting records of Prosper Inc. provided the following data for the current year. Balance Sheet, December 31 2020 2021 Cash $ 800 $ 2,120 Accounts receivable 2,400 1,600 Merchandise inventory 800 2,400 Equipment, net 14,400 16,800 Total assets $18,400 $22,920 Accounts payable $ 2,200 $ 1,920 Salaries payable 400 200 Bonds payable 4,800 6,400 Common stock (no-par) 8,800 9,600 Retained earnings 2,200 4,800 Total liabilities and stockholders' equity $18,400 $22,920 Income Statement For Year Ended, December 31 2021 Revenues $24,000 Cost of goods sold (13,600) Depreciation (3,200) Other expenses (3,080) Net income $ 4,120 Additional information for 2021: Equipment was sold for its book value of $4,000. Equipment was purchased during the year for $9,600. Dividends declared and paid were $1,520.
Prepare the 2021 statement of cash flows in good form following the indirect method in presenting cash flows from operating activities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started