Net cash flows from operating ac laws from Investing Activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Additional Information for 2021:
1. Net income is $74,000.
2 The company purchases $115,000 in equipment.
3. Deprecistion expense is $155,000.
4. The company repays $105,000 in notes payable.
5. The company declares and pays a cash dividend of $27,500.
Required:
Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease In cash as negative amounts.)
statement of Cash Flowe
For the Year Ended December 31, 2021
Cash Flaws from Operating Activities
Adjustments to reconcile net income to net
cash flows from operating activities
Net cash flows from aperating activities
Cash Flaws from Investing Activities
Net cash flows from investing activities
Cash Flaws from Financing Activities
Net cash flows from financing activities
Cash at the beginning of the period
Cash at the end oaf the period

Transcribed Image Text:The balance sheets for a company, along with additional information, are provided below:
Balance Sheets
December 31, 2021 and 2020
2021
2020
Assets
Current assets:
$ 107,800
$ 118,100
94,500
84,500
2,500
Cash
80,000
100,000
5,000
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
505,000
695,000
(278,000)
$1,221,600
Land
505,000
810,000
(433,000)
$1,174,800
Equipment
Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
$ 104,000
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
6,300
9,000
89, 500
12,600
5,500
105,000
210,000
Common stock
Retained earnings
Total liabilities and stockholders' eguity
725,000
225,500
$1,174,800
725,000
179,000
$1,221,600
Additional Information for 2021:
1. Net income is $74,000.
2. The company purchases $115,000 in equipment.
3. Depreciation expense is $155,000.
4. The company repays $105,000 In notes payable.
5. The company declares and pays a cash dividend of $27,500.
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