P5-3 Preparing a Statement of Cash Flows (Indirect Method) LO5-2,5-7 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 $ 10,800 $ 18,800 Short-term investments 75,600 43,400 Accounts receivable 77,000 33,200 Inventories, at cost 57,600 41,800 Prepaid expenses 5,800 9,600 Land 52,200 79,000 Property, plant, and equipment, net 287,200 188,000 Intangible assets 25,800 31,600 $592,000 $445,400 Liabilities and Shareholders' Equity Accounts payable $ 18,800 $ 43,600 Income tax payable 9,600 2,800 Accrued liabilities 11,800 . Long-tern notes payable 128,000 186,000 Contributed capital 236,000 69,000 Retained earnings 187,800 144,000 $592,000 $445,400 MIKOS INC. Statement of Earnings For the Year Ended December 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 $904,000 $448,000 5,800 34,800 239,000 _13,800 741,400 162,600 48,780 $113,820 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 $167,800 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $19,000 were paid in cash, and notes of $39,000 were converted to shares. Required: 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.) MIKOS INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities Adjustments to reconcile net earnings to net cash provided by operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 Cash and short-term investments, beginning of year Cash and short-term investments, and of year $ 0