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Use the income statement, comparative balance sheet and additional information below to prepare a Statement of Cash Flows for 2021 for Amys Bird Supply Inc.
Use the income statement, comparative balance sheet and additional information below to prepare a Statement of Cash Flows for 2021 for Amys Bird Supply Inc. using the Indirect method. Show (and label) all computations.
Amy's Bird Supply Inc. As of 12/31/2020 and 12/31/2021 12/31/2020 12/31/2021 change Assets Cash $1,850,000 $3,875,000 $2,000,000 $4,625,000 $150,000 $750,000 Accounts Receivable Inventory Prepaid Rent $2,000,000 $925,000 $8,650,000 $3,564,000 $940,000 $11,129,000 $1,564,000 $15,000 $2,479,000 Total Current Assets Investments $1,500,000 $750,000 -$750,000 Property Plant and Equipment Vehicles Accum Depreciation on Vehicles Total PPE Total Assets $2,500,000 $1,400,000 $1,100,000 $11.250.000 $2,800,000 $1,200.000 $1,600,000 $13.479,000 $300,000 $200,000 $500,000 $2,229,000 Liabilities and Equity Liabilities Accounts Payable Advertising Payable Taxes Payable Salaries Payable Total Liabilities Equity Common Stock Retained Earnings Total Equity Total Liabilities and Equity $710,000 $600,000 $800,000 $140,000 $2,250,000 $964,000 $630,000 $360,000 $150,000 $2,104,000 $254,000 $30,000 -$440,000 $10,000 -$ 146,000 $5,000,000 $4,000,000 $9,000,000 $11,250,000 $5,000,000 $6,375,000 $11,375,000 $13.479.000 $o $2,375,000 $2,375,000 $2,229,000 Amy's Bird Supply Inc. Income Statement For the year ended 12/31/2021 $25,000,000 -11000000 $14,000,000 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Advertising Expense Rent Expense Salaries and Wages Expense Other Admin Expenses Total Operating Expenses Net operating income Other Gains / Income Loss on Sale of Vehicles Income Before Tax $200,000 $1,050,000 $2,000,000 $3,000,000 $2,000,000 -$8,250,000 $5,750,000 -300,000 $5,450,000 -$3,000,000 2,450,000 Income Tax expense Net Income Additional information 1.1/2/2021 Fleet Vehicles costing $1,200,000 with $400,000 accumulated depreciation were sold for $500,000 Cash. 2. 1/3/2021 Vehicles Costing $1,500,000 were purchased for cash. 3. 12/29/2021 Cash dividends of $75,000 were paidStep by Step Solution
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