The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:

Additional Information for 2021:

1. Net income is $79,000.

2. The company purchases $110,000 in equipment.

3. Depreciation expense is $150,000.

4. The company repays $115,000 in notes payable.

5. The company declares and pays a cash dividend of $30,000.

Required:

Prepare the statement of cash flows using the indirect method.

Transcribed Image Text:

PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 108,900 $ 126,800 Accounts receivable 82,000 97,000 Inventory Prepaid rent Long-term assets: 105,000 89,000 6,000 3,000 Land 530,000 530,000 720,000 Equipment 830,000 Accumulated depreciation (438,000) $1,223,900 (288,000) $1,277,800 Total assets Liabilities and Stockholders' Equity Current liabilities: $ 109,000 Accounts payable Interest payable Income tax payable 94,000 13,800 6,900 10,000 6,000 Long-term liabilities: Notes payable Stockholders' equity: 115,000 230,000 Common stock 750,000 750,000 Retained earnings Total liabilities and stockholders' equity 233,000 184,000 $1,223,900 $1,277,800