The comparative balance sheet and income statement of Corp. follow. had no non-cash investing and financing transactions during . During the year, there were no sales of land or equipment, no issuance of notes payable, and no repurchase of shares transactions.

Requirement 1. Prepare the statement of cash flows, formatting operating activities by using the indirect method. Start by completing the cash flows from operating activities. Then, continue with completing the investing and financing activities sections. Finally, determine the net increase in cash. (Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in a statement of cash flows.)

Requirement 2. How will what you learned in this problem help you evaluate an investment? A. Learn how companies prepare the statement of cash flows B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments C. Both A and B D. None of the above

Outdoor Supply Corp. Comparative Balance Sheet As at December 31, 2020 and 2019 Outdoor Supply Corp. Income Statement For the Year Ended December 31, 2020 Revenues: Sales revenue Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income Outdoor Supply Corp. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Decrease in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in salary payable Decrease in other accrued liabilities Net cash provided by operating activities Cash flows from investing activities: Purchase of land Purchase of equipment Net cash used for investing activities Cash flows from financing activities: Comparative balance sheet