The 2021 and 2020 balance sheets of Gibson Corporation follow. The 2021 income statement is also provided.

Question:

The 2021 and 2020 balance sheets of Gibson Corporation follow. The 2021 income statement is also provided. Gibson had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,200, which had originally cost $12,800 and had a book value of $11,300. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and long-term investments with cash.


Requirements
1. Prepare the statement of cash flows for Gibson Corporation for 2021 using the indirect method.
2. Evaluate the company’s cash flows for the year. Discuss each of the categories of cash flows in your response.

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