/ TIL ///// /////// / 19 $212.000 IIIIIIIIIIIIIIII III // 41. PROBLEM CHAPTER 11 answer on a separate piece of paper in your own handwriting 20 pts. The income statement, balance sheets, and additional information for Communication Accessories are provided. Communication Accessories Income Statement For the Year Ended December 31, 2021 Revenues $2.800.000 Gain on sale of land 4.000 Total revenues 2.804,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense 16,000 Income tax expense 63.000 Total expenses 2.592.000 Net Income Communication Accessories Balance Sheets December 31 Assets 2020 Current Assets: Cash $182,000 $187.000 Accounts receivable 83.000 95,000 Inventory 121,000 138,000 Prepaid rent 7,000 5,000 Long-Term Assets Investment in stock 195,000 100,000 Land 230,000 260,000 Equipment 305,000 225.000 Accumulated depreciation (138.000 (400000 Total Assets $985.000 $910.000 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Income tax payable Long-Term Liabilities: Notes payable 285,000 205,000 Stockholders' Equity: Common stock 350,000 Retained earnings 297.000 285.000 Total Liabilities and Equity 5985.000 5910.000 Additional Information for 2021: 1. Purchase additional investment in stocks for 595,000. 2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land. 3. Purchase 580,000 in equipment by borrowing 580,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. The company declares and pays a cash dividend of $200,000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (CONTINUED NEXT PAGE) LE ////////// ////////// ///// IL MILITI $58.000 15.000 / III / // / / /