Question
The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Cash Accounts receivable
The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation Accounts payable Accrued liabilities Long-term notes payable Common stock Retained earnings Kinder Company Balance Sheet December 31 2021 $ 30,900 2020 $ 10,200 43,300 20,300 35,000 42,000 0 15,000 236,500 150,000 (37,700) $308,000 $ 17,000 21,000 (25,000) $212,500 $ 26,500 17,000 70,000 50,000 130,000 90,000 70,000 29,000 $308,000 $212,500 Additional data: 1. Purchased machinery and gave a $60,000 long-term note payable. 2. Paid a $40,000 long-term note payable by issuing common stock. 3. Sold the long-term investments for $33,000 (assume gain or loss is ordinary). 4. Paid dividends of $20,000. 5. Purchased machinery costing $26,500, paid cash. Instructions Using the format provided on the next page, prepare a statement of cash flows (using the indirect method) for 2021 for Kinder Company. Kinder Company Statement of Cash Flows For the Year Ended December 31, 2021 Increase (Decrease) in Cash Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase (decrease) in cash Cash, January 1, 2021 Cash, December 31, 2021
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