To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2021 activity in two accounts:

Ronklin Electric’s 2021 income statement and balance sheet data follow: 

Requirements 

1. Prepare the statement of cash flows of Ronklin Electric for the year ended December 31, 2021, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.

2. Use Ronklin Electric’s 2021 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method.

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Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends Ending Bal Cash 34,900 Payments on accounts payable 18,700 Payments of dividends 661,900 Payments of salaries and wages 37,900 Payments of interest 17,000 Purchase of equipment Payments of other operating expenses 42,900 Payment of long-term note payable Purchase of treasury stock Payment of income tax Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 387,000 27,000 143,100 23,100 31,500 34,700 41,500 21,200 18,400 89,100 37,900 53,000 15,000 195,000