Using those financial statements and the additional information supplied in their notes, prepare the 2021 Statement of Cash Flows for Tootsie Roll Industries, Inc. using the direct method.

A/R:

Bad debt expense of $2000 is included in selling, marketing, and administrative expenses. Only $1200 of A/R was determined to be uncollectible in 2021.

Inventory:

Inventory is stated at cost, not to exceed market. The cost of substantially all of the Companys inventory has been determined by the last-in, first out (LIFO) method. The excess of replacement cost over LIFO cost approximates $16,580 and $5,190 at December 31, 2021 and 2020, respectively.

Investments:

Investments are classified as held-to-maturity securities. The company did not purchase any investments in 2021.

Property, plant and equipment:

Depreciation is computed for financial reporting purposes by use of the straight-line method. The company purchased $37,020 in equipment during 2021. Of this amount, $10,000 was purchased through the exchange of common stock.

Intangible assets:

Intangible assets consist of goodwill and trademarks. All intangible assets have been assessed by management to have indefinite lives because they are expected to generate cash flows indefinitely.

Statement of Earnings 2020 420110 -244501 175609 -69241 Net Sales Cost of goods sold Gross margin Selling, marketing and administrative expenses Impairment loss Depreciation Gain on sale of equipment Earning before income taxes Provision for income taxes Net income 2021 487739 -299156 188583 -77956 -4126 - -14690 21840 - 113651 -36425 77226 -11680 94688 -30514 64174 Balance Sheet Cash and cash equivalents Account receivables, net Inventory Prepaid Expenses Total current assets 2021 91336 33624 55032 5840 185832 2020 56989 37457 58777 5719 158942 Investments Property, plant and equipment, net Goodwill and trademarks Total assets 180014 178760 263218 807824 205335 178750 267344 810371 104275 4263 Accounts payable Dividends payable Accrued Liabilities Bank Loans Industrial development bonds Total liabilites 42381 32000 104130 3659 32903 92000 7500 240192 7500 190419 Common Stock Retain Earnings Total stockholders' equity 441124 176281 617405 421124 149055 570179 Total liabilites & stockholder's equity 807824 810371