Complete the Statement of Cash Flows using the indirect method and disclose any noncash transactions in the accompanying note. (Details to problem are submitted via images attached and have to be opened in full view because there are words/numbers still at the bottom part of the screen)Additional Information for 2021:1. Purchase additional investment in stocks for $95,0002. Sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land3. Purchase $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash is exchanged in the transaction.4. Declare and pay a cash dividend of $120,0005. Issue common stock for $60,000Prepare the statement of cash flows using the indirect method and disclose any noncash transactions in the accompanying note. 10:16 1Done Statement of Cash Flows HW co...The Income Statement, balance sheet and additional informationfor Maine Goods Company is provided.Main Goods CompanyIncome StatementFor year ended December 31, 2021$2,600,000Net SalesGain on sale of landTotal revenues$7,000$2,607,000ExpensesCost of goods soldOperating expenseDepreciation expenseInterest expenseIncome tax expenseTotal Expenses$1,650,000615,00033,00034,00080,0002,412,000$ 195,000Net IncomeMaine Goods CompanyBalance SheetDecember 31stAssets20Current Assets:202120Cash$409,500$343,800Accts receivable64,00080,000Inventory145,000Prepaid rent7,200Long-term assets:160,0004,600Investments205,000110,000Land215,000270,000Equipment220,000250,000Accumulateddepreciation(143,000).(110,000)1,165,1000Total Assets1,066,000Liabilities and Stockholders EquityCurrent liabilities:Accounts payable$98,000Interest payable5,100Income tax payable25,000Long-term liabilities:$35,0004,00029,000Notes 10:16 1Done Statement of Cash Flows HW co...Accts receivable80,000Inventory145,000Prepaid rent7,20064,000160,0004,600Long-term assets:Investments205,000110,000Land215,000270,000Equipment220,000Accumulated250,000depreciation(143,000).(110,000)1,165,1000Total Assets1,066,000Liabilities and Stockholders EquityCurrent liabilities:Accounts payable$98,000Interest payable5,100Income tax payable25,000Long-term liabilities:$35,0004,00029,000Notes265,000раayableStockholders equity235,000CommonStock460,000400,000Retainedearnings375,000Total liabilities and stockholders300,000equity$1,165,100$1,066,000Additional Information for 2021:1. Purchase additional investment in stocks for $95,0002. Sell land costing $55,000 for $62,000, resulting in a $7,000gain on sale of land3. Purchase $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash is exchanged in thetransaction.4. Declare and pay a cash dividend of $120,0005. Issue common stock for $60,000Prepare the statement of cash flows using the indirect methodand disclose any noncash transactions in the accompanyingnote.

The cash flow statement provides the net cash provided or used by various activities in the…

Answered: Complete the Statement of Cash Flows…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Complete the Statement of Cash Flows using the indirect method and disclose any noncash transactions in the accompanying note. (Details to problem are submitted via images attached and have to be opened in full view because there are words/numbers still at the bottom part of the screen)

Additional Information for 2021:

1. Purchase additional investment in stocks for $95,000

2. Sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land

3. Purchase $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $120,000

5. Issue common stock for $60,000

Prepare the statement of cash flows using the indirect method and disclose any noncash transactions in the accompanying note.

10:16 1
Done Statement of Cash Flows HW co...
The Income Statement, balance sheet and additional information
for Maine Goods Company is provided.
Main Goods Company
Income Statement
For year ended December 31, 2021
$2,600,000
Net Sales
Gain on sale of land
Total revenues
$7,000
$2,607,000
Expenses
Cost of goods sold
Operating expense
Depreciation expense
Interest expense
Income tax expense
Total Expenses
$1,650,000
615,000
33,000
34,000
80,000
2,412,000
$ 195,000
Net Income
Maine Goods Company
Balance Sheet
December 31st
Assets
20
Current Assets:
2021
20
Cash
$409,500
$343,
800
Accts receivable
64,000
80,000
Inventory
145,000
Prepaid rent
7,200
Long-term assets:
160,000
4,600
Investments
205,000
110,000
Land
215,000
270,000
Equipment
220,000
250,000
Accumulated
depreciation
(143,000).
(110,000)
1,165,1000
Total Assets
1,066,000
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable
$98,000
Interest payable
5,100
Income tax payable
25,000
Long-term liabilities:
$35,000
4,000
29,000
Notes

10:16 1
Done Statement of Cash Flows HW co...
Accts receivable
80,000
Inventory
145,000
Prepaid rent
7,200
64,000
160,000
4,600
Long-term assets:
Investments
205,000
110,000
Land
215,000
270,000
Equipment
220,000
Accumulated
250,000
depreciation
(143,000).
(110,000)
1,165,1000
Total Assets
1,066,000
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable
$98,000
Interest payable
5,100
Income tax payable
25,000
Long-term liabilities:
$35,000
4,000
29,000
Notes
265,000
раayable
Stockholders equity
235,000
Common
Stock
460,000
400,000
Retained
earnings
375,000
Total liabilities and stockholders
300,000
equity
$1,165,100
$1,066,000
Additional Information for 2021:
1. Purchase additional investment in stocks for $95,000
2. Sell land costing $55,000 for $62,000, resulting in a $7,000
gain on sale of land
3. Purchase $30,000 in equipment by issuing a $30,000 long-
term note payable to the seller. No cash is exchanged in the
transaction.
4. Declare and pay a cash dividend of $120,000
5. Issue common stock for $60,000
Prepare the statement of cash flows using the indirect method
and disclose any noncash transactions in the accompanying
note.

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