vintage motors inc. statement of cash flows (indirect method)

On January 1, 2021, Vintage issued its common stock for $440,000. Early in January, Vintage made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) c. $17,000 for 2021 rent on a store building In February, Vintage purchased two cars for inventory on account. The cost of this inventory was $80,000 ($40,000 per car). Before year-end, the company paid off $40,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Vintage sold eight autos for a total of $488,000. Before year-end, it had collected 40% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Vintage owes $3,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2021, Vintage declared and paid cash dividends of $16,000. For equipment, Vintage uses the straight-line depreciation method, over five years, with zero residual value. Vintage Motors, Inc. Income Statement Year Ended December 31, 2021 Revenue: Sales revenue $ 488,000 Expenses: Cost of goods sold 243,000 Salary expense 125,000 Rent expense 17,000 Depreciation expense 36,000 Income tax expense 12,600 $ 54,400 Net income (loss) Requirement 2. Prepare Vintage's balance sheet at December 31, 2021. Assets $ 40,000 3,000 Current assets: Cash Accounts recevable Inventory Total current assets Vintage Motors, Inc. Balance Sheet December 31, 2021 Llabilities Current liabilities: 44,600 Accounts payable 292,800 Salary payable 40,000 Total current liabilities 377,400 Stockholders' equity Common stock $ 180,000 Retained earnings (36,000) 144.000 Total stockholders' equity 43,000 440,000 38,400 Property, plant, and equipment: Equipment Less: Accumulated depreciation 478,400 521,400 Total assets $ 521,400 Total liabilities and stockholders' equity Requirement 3. Prepare Vintage's statement of cash flows for the year ended December 31, 2021. Format cash flows from opera neterrease in rash Enter" for zoro balances. Vintage Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities