Lu Corporation?s comparative balance sheet is presented below.

Additional information:1. Profit was $22,630. Dividends declared and paid were $19,500.

2. No noncash investing and financing activities occurred during 2021.

3. The land was sold for cash of $4,900 resulting in a loss of $1,100 on the sale of the land.

Instructions

Prepare a cash flow statement for 2021 using the indirect method. Lu Corporation reports under ASPE.

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LU CORPORATION Balance Sheet December 31 Assets 2021 2020 Cash $ 14,300 $ 10,700 Accounts receivable 21,200 23,400 Land 20,000 26,000 Building Accumulated depreciation-building 70,000 70,000 (15,000) (10,000) Total $110,500 $120,100 Liabilities and Shareholders' Equity Accounts payable $ 12,370 $ 31,100 Common shares 75,000 69,000 Retained earnings 23,130 20,000 Total $110,500 $120,100