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The following is the comparative balance sheet as of December 31, 2021 and 2020 and the income statement for the year ended December 31, 2021
The following is the comparative balance sheet as of December 31, 2021 and 2020 and the income statement for the year ended December 31, 2021 for Lynbrook Inc.: 2020 Assets: Cash Accounts receivable Inventory Total current assets Property, Plant & Equipment Less: Accumulated depreciation Net Property, Plant & Equipment Total Assets Lynbrook Inc. Comparative Balance Sheet December 31, 2021 and 2020 2021 $ 39 $ 81 670 588 620 610 1,329 1,505 1484 (770) (651) 735 2,064 1,279 833 S 2,112 $ 2,04 $ 2.12 '' Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income tax payable Total current liabilities Bonds payable Total liabilities $ $ 260 180 77 160 170 72 517 415 932 402 600 1,002 Shareholders' Equity: Common stock Retained earnings Total stockholders' equity Total Liabilities and Stockholder's Equity 145 987 1,132 145 965 1,110 $ 2,064 $ 2,112 Lynbrook Inc. Income Statement For the year ended December 31, 2021 $ 3,700 2,540 1,160 880 280 Sales Cost of goods sold Gross Margin Selling and administrative expenses Net operating income Other income and expenses Gain on sale of equipment Income before taxes Income tax expense Net Income 2 282 112 170 $ The accounting department at Lynbrook provided the additional information: 1. The company sold equipment that had an original cost of $12 million and accumulated depreciation of $7 million. The cash proceeds from the sale were $7 million. The gain on the sale was $2 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not issue or repurchase any shares of common stock during the year. Required: Prepare a complete statement of cash flows for the year (operating, investing, and financing). Use the indirect method to prepare the operating activities section of the statement. Reminder: Continue using the excel HW policies for preparing your solutions to the above questions, including the standard four line heading
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