X Edita Search The Comparative Balance Sheet, Income Statement and supplemental date for Gallagher Corporation as of December 31, 2021 are provided. GALLAGHER CORPORATION Comparative Balance Sheet December 31 2021 2020 Assets Cash 65,000 $ 51,000 Accounts Receivable (net) 145,000 122,000 Inventory 75,000 61,000 Debt Investments (available for sale) 46,000 76,000 Equipment 70,000 48,000 Accumulated Depreciation: Equipment (20,000) (14,000) Buildings 145,000 145,000 Accumulated Depreciation: Buildings (37,000) (28,000) Land 40,000 25,000 Intangibles 8,000 9,000 537,000 495,000 Total Assets Liabilities $ Accounts Payable Income Taxes Payable Long-Term Notes Payable 66,000 12,000 62,000 140,000 60,000 10,000 70,000 140,000 $ 260,000 95,000 Stockholders' Equity Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 310,000 92,000 (5,000) 397,000 537,000 355,000 495,000 $ Search GALLAGHER CORPORATION Income Statement For the Year Ending December 31, 2021 950,000 600,000 350,000 250,000 100,000 Sales revenue Less: Cost of Goods Sold Gross Profit Less Operating Expenses Income from Operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net Income $ 15,000 (3,000) 12,000 112,000 45,000 67,000 $ Additional Information 1. Equipment costing $10,000 was sold and was 60% depreciated. New equipment was also purchased during the year 2. Cash dividends were dedared and paid. 3. Common stock was exchanged for Land. 4. Debt investments costing $35,000 were sold during the year. New debt investment were purchased during the year for $5,000. 5. Accounts receivable are shown net of the allowance for doubtful accounts, because there were no account write-offs during the year. 6. Operating expenses include: Depreciation Expense, $21,000, Amortization Expense, and Interest Expense, $3,300 Instructions: 1. Prepare the Statement of Cash Flows for Gallagher Corporation using the "indirect" method. You need to include Supplemental Cash Disclosure information and Non Cash Investing and Financing Activities. 2. Prepare the Operating Activities Section using the "direct" method. Show supporting calculations