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The comparative statements of financial position of Mikos Inc. as at December 31, 2020 and 2021 and its statement of earnings for the year ended
The comparative statements of financial position of Mikos Inc. as at December 31, 2020 and 2021 and its statement of earnings for the year ended December 31, 2021 are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2021 2020 Assets Cash $ 9,700 $ 17,700 Short-term investments 56,900 29, 100 Accounts receivable 71,500 28,800 Inventories, at cost 55,400 40,700 Prepaid expenses 4,700 7,400 Land 47,800 73,500 Property, plant, and equipment, net 282,800 182,500 Intangible assets 24,700 29,400 $553,500 $409,100 Liabilities and Shareholders' Equity Accounts payable $ 17,700 $ 41,400 Income tax payable 7,400 1,700 Accrued liabilities 10,700 Long-term notes payable 117,000 164,000 Contributed capital 214,000 63,500 Retained earnings 186,700 138,500 $553,500 $409,100 $871,000 MIKOS INC. Statement of Earnings For the Year Ended Dec 31, 2021 Sales Cost of sales Amortization expense-intangible assets Depreciation expense-property, plant, and equipment Operating expenses Interest expense Earnings before income taxes Income tax expense Net earnings $437,000 4,700 33,700 228,000 12,700 716,100 154,900 46,470 $108,430 Additional Information is as follows: a. Land was sold for cash at its carrying amount. b. The short-term investments will mature in February 2022. C. Cash dividends were declared and paid in 2021. d. New equipment with a cost of $166,700 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $13,500 were paid in cash, and notes of $33,500 were converted to shares. 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2021 by using the indirect method. (Negative answers should be indicated by a minus sign.) $ 108,430 MIKOS INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization expense Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in income tax payable Increase in accrued liabilities 38,400 (42,700) 10,700 $ 114,830 Net cash flow from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of land 0 Net cash flow used for investing activities Cash flows from financing activities: Repayment of long-term note Payment of cash dividends Issuance of common shares (13,500) Net cash flow from financing activities Net increase in cash and short-term investments Cash and short-term investments, beginning of year (13,500) 101,330 Cookandokant teres in restante dofurnar C 101 220
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