Question
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 115,000 $ 131,200 Accounts receivable 79,600 94,000 Inventory 99,000 83,600 Prepaid rent 4,800 2,400 Long-term assets: Land 500,000 500,000 Equipment 806,000 690,000 Accumulated depreciation (432,000 ) (276,000 ) Total assets $ 1,172,400 $ 1,225,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 103,000 $ 88,600 Interest payable 6,600 13,200 Income tax payable 8,800 5,400 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock 720,000 720,000 Retained earnings 224,000 178,000 Total liabilities and stockholders' equity $ 1,172,400 $ 1,225,200 Additional Information for 2021: Net income is $73,000. The company purchases $116,000 in equipment. Depreciation expense is $156,000. The company repays $110,000 in notes payable. The company declares and pays a cash dividend of $27,000. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
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