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Z Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $161,500 $28,750 Available-for-sale debt securities (not cash equivalents) 15,500 85,000

  1. Z Corporation reported the following balance sheet data for 2021 and 2020:

2021

2020

Cash

$161,500

$28,750

Available-for-sale debt securities

(not cash equivalents)

15,500

85,000

Accounts receivable

70,000

48,250

Inventory

173,000

151,000

Prepaid insurance

3,500

2,000

Land, buildings, and equipment

1,260,000

1,125,000

Accumulated depreciation

(620,000)

(575,000)

Total assets

$1,063,500

$865,000

Accounts payable

$76,000

$135,000

Salaries payable

26,000

23,500

Notes payable (current)

30,000

65,000

Bonds payable

250,000

0

Common stock

300,000

300,000

Retained earnings

381,500

341,500

Total liabilities and shareholders' equity

$1,063,500

$865,000

Additional information for 2021:

(1.) Sold available-for-sale debt securities costing $69,500 for $74,000.

(2.) Equipment costing $30,000 with a book value of $10,000 was sold for $6,000.

(3.) Issued 6% bonds payable at face value, $250,000.

(4.) Purchased new equipment for $165,000 cash.

(5.) Paid cash dividends of $30,000.

(6.) Net income was $70,000.

Required:

Prepare a statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities.

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