The comparative balance sheets, income statement and

Ink Inc.

Balance Sheet

At31 Decemher

Assets

Cash

Accounts Receivable

Inventory

Prepaid Insurance

Equipment

Accumulated Depreciation - Equipment

Building

Accumulated Depreciation - Building

Total Assets

Liabilities and Stockholders' Equity

Liabilities

Accounts Payable

Unearned Revenue

Notes Payable (long-term

Total Liabilities

Stockholders' Equity

Common Stock

Retained Earnings

Treasury Stock

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity

2021

214,720

41,250

73,400

16,900

151.300

(61,200)

575,000

(64.000)

947,370

2020

198.420

38.650

77,800

23,700

145.600

(67,200)

467.000

(48.000)

835,970

26,100

23,050

257,000

306.150

38,800

15,250

211.000

265,050

450.000

242,220

(51.000)

641.220

947.370

420.000

195,920

(45.000)

570.920

835.970

Income Statement

Hor the Year Ended 31 December 2021

Revenues

Cost of goods solc

Operating expenses

Depreciation expenses

Loss on sale of equioment

Tax expense

Net income

385,200

209.200

74,000

28,000

3.800

15,900

54,300

Additional Information

a. Paid $38.000 for a new equipment

b. An equioment with an original cost of $32 300 (its book value was $14.300) was sold

for $10,500 cash.

C. Paid $62.000 to settle a note payable

d. Signed a 8-year promissory note of $108.000 in exchange for a new building

eA shares-related transactions were carried out in cash

I. Dividends were declared and paid by cash

Instruction:

Prepare the statement of cash flows for the vear ended 31 December 2021. using the indirect method

Part 2: Statement of Cash Flows ( 25 marks) The comparative balance sheets, income statement and additional information of Ink Inc. are presented as follows. Ink Inc. Balance Sheet At 31 December Ink Inc. Income Statement For the Year Ended 31 December 2021 Additional Information a. Paid $38,000 for a new equipment. b. An equipment with an original cost of $32,300 (its book value was $14,300 ) was sold for $10,500cash. c. Paid $62,000 to settle a note payable. d. Signed a 8-year promissory note of $108,000 in exchange for a new building. e. All shares-related transactions were carried out in cash. f. Dividends were declared and paid by cash. Instruction: Prepare the statement of cash flows for the year ended 31 December 2021 , using the indirect method