Willoughby Corporation's comparative balance sheet and income statement for the year ended December 31, 2021 are provided below. During 2021, the Company also reported the following activities: Purchased equipment for $50 in cash. Borrowed an additional $70 on the note payable Issued shares of common stock for $5 Paid dividends of $3 Willoughby Corporation Balance Sheet As of December 31, 2021 Willoughby Corporation Income Statement For the Year ended December 31, 2021 Dec. 31, 2021 Dec. 31, 2020 $ $ Assets: Current Assets: Cash and Cash equivalents Accounts Receivable Inventories Total Current Assets 194 150 135 479 37 75 235 347 Net Sales $ 600 Cost of Goods Sold 290 Gross Profit 310 Operating Expenses: Selling, General and Admin Expenses 160 Depreciation Expense 30 Total Operating Expenses 190 Income from operations 120 Interest expense 30 Net income before taxes 90 Income tax expense 27 Net income $ 63 Equipment Less: Accumulated Depreciation Equipment, net Total Assets 566 _(85) 481 $ 960 516 (55) 461 $ 808 #| $ 5 13 Liabilities and Stockholders' Equity Current Liabiltiies Accounts Payable $ 25 Accrued Liabilities 5 Total Current Liabilities 30 Notes Payable 505 Total Liabiltiies 535 Stockholders' Equity Common Stock 15 Retained Earnings 410 Total Stockholders' Equity 425 Total Liab. and Stockholders' Equity $ 960 435 448 10 350 360 $ 808 Question 19 (22 points) Using the information above, complete the cash flow statement by providing the correct information below. Where it says increase/decrease, you will select one or the other as your answer (blanks 4, 6, 8, 10). For dollar amounts, use format: 250 for a positive amount (you are adding) and (250) or -250 for a negative amount (you are subtracting). For blank #14, just fill in the word that is missing. I recommend working this out on paper and turning in your work as well! Willoughby Corporation Statement of Cash Flows For the year ended December 31, 2021 Cash Flows from BLANK 1 activities: Net Income BLANK 2 Add back: Depreciation expense BLANK 3 Changes in Current assets/current liabilities: Increase / Decrease (BLANK 4) in Accounts Receivable BLANK 5 Increase/Decrease (BLANK 6) in Inventories BLANK 7 Increase/Decrease (BLANK 8) in Accounts Payable BLANK 9 Increase / Decrease (BLANK 10) in Accrued Liabilities BLANK 11 Total cash flows from (same as blank 1) Activities BLANK 12 Cash Flows from BLANK 13 activities: BLANK 15 Purchase of BLANK 14 Total cash flows from (same as blank 13) Activities (SAME AS BLANK 1: Cash Flows from BLANK 16 activities: Borrowed on note payable Issuance of stock Payment of cash dividends BLANK 17 BLANK 18 BLANK 19 Total cash flows from (same as blank 16) Activities BLANK 20 TOTAL INCREASE IN CASH $ 157 Cash and cash equivalents on January 1, 2021 Cash and cash equivalents on December 31, 2021 BLANK 21 BLANK 22
