- X Balance sheet The comparative balance sheet for Majestic Travel Services, Inc., for December 31, 2021 and 2020, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Majestic Travel Services, Inc.: A (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Majestic Travel Services, Inc., for 2021. 1 2 A B B Majestic Travel Services, Inc. Comparative Balance Sheets December 31, 2021 and 2020 Assets 2021 Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and decreases in 3 4 2020 5 Current assets: 6 Cash $ 41,000 $13,000 7 Accounts receivable 84,000 35000 8 Inventory 83,000 55,000 8,000 18.000 9 Prepaid insurance 11,000 10 Total current assets $ 187,000 S 126,000 Majestic Travel Services, Inc. Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended December 31, 2021 , Operating Activities: Net income Adjustments to reconcile net income to cash basis: Decrease in accounts receivable 1000 Increase in inventory -37000 Decrease in prepaid insurance 3000 Decrease in accounts payable -10000 Increase in wages payable 12000 Increase in Interest payable 2000 Increase in income taxos payable 3000 Depreciation expense 6000 Loss on sale of land -3700 11 12 Land 13 Equipment 14 Less: Accumulated depreciation $ 103,000 S 117,000 77,000 54.000 (14,000) (8,000) 15 Total assets $ 353,000 S 289,000 16 17 Llabilities 23700 Net cash provided by (used for) operating activities 11300 The comparative balance sheet for Majestic Travel Services, Inc., for December 31, 2021 and 2020, is as follows: (Click the icon to view the comparative balance sheet. The following information is taken from the records of Majestic Travel Services, Inc.: (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Majestic Travel Services, Inc., for 2021. 16 17 Liabilities 18 Current liabilities: S 29.000 $ 39,000 33,000 21,000 Prepare the statement one section at a time. (Use parentheses or a min Transactions 19 Accounts payable 20 Wages payable 21 Interest payable 22 Income taxes payable 23 Total current liabilities 14,000 12.000 12,000 9,000 88.000 $ 81.000 S Majestic Travel Services, Inc. Statement of Cash Flows-Operating Activities Section For the Year Ended December 31, 2021 , Operating Activities: Nel income 24 25 Notes payable (long-term) 96.000 a. Land was sold for $10.300. b. Equipment was purchasod for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. c. Net Income for 2021 was $35,000. f. Cash dividends paid during the year were $6,000. 87.000 26 Total liabilities S 184,000 $ 168.000 27 28 Adjustments to reconcile net income to cash basis: Decrease in accounts receivable Increase in Inventory Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable Increase in interest payable Increase in income taxes payablo Depreciation expense S 137,000 $ 118.000 32,000 3,000 Print Done Stockholders' equity 29 Common stock 30 Retained earnings 31 Total stockholders' equity 32 33 Total liabilities and equity S 169,000 $ 121,000 3000 S 353,000 $ 289.000 6000 Loss on sale of land -3700 -23700 11300 Net cash provided by used for) operating activities Print Done