20 Cash flow statement [17 marks] The balance sheets for Angel Music Co. at December 31,...

    

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20 Cash flow statement [17 marks] The balance sheets for Angel Music Co. at December 31, 2021 and December 31, 2020 follow: Cash Accounts receivable Land Equipment Accumulated depreciation Total Assets Accounts payable Long-term loans payable Common shares Retained earnings. Total Liabilities & Shareholders' Equity ******** December 31 2021 2020 $70,000 $30,000 37,000 55,000 175,000 (37.000) $300,000 3,000 90,000 135,000 72,000 41,000 35,000 150,000 (25.000) $231,000 4,000 40,000 130,000 57,000 $300,000 $231,000 Additional information for 2021: 1. Net Income was $ 50,000. 2. Land with a book value of $10,000 was sold for $25,000. 3. Paid off a $20,000 long-term note payable. 4. New equipment costing $5,000 was bought and paid for by issuing common shares, 5. No equipment was sold during the year. 6. A new loan for $65,000 was taken out during the year. Required: Prepare a statement of cash flows using the indirect method for the year ended December 31, 2021. MAKE SH IS IN PROPER FORMAT. You can use the template provided to help you with the cash flow statement. CASH FROM OPERATING ACTIVITIES Net Income CASH FROM INVESTING ACTIVITIES CASH FROM FINANCING ACTIVITIES CASH FROM FINANCING ACTIVITIES Increase in cash $40,000 20 Cash flow statement [17 marks] The balance sheets for Angel Music Co. at December 31, 2021 and December 31, 2020 follow: Cash Accounts receivable Land Equipment Accumulated depreciation Total Assets Accounts payable Long-term loans payable Common shares Retained earnings. Total Liabilities & Shareholders' Equity ******** December 31 2021 2020 $70,000 $30,000 37,000 55,000 175,000 (37.000) $300,000 3,000 90,000 135,000 72,000 41,000 35,000 150,000 (25.000) $231,000 4,000 40,000 130,000 57,000 $300,000 $231,000 Additional information for 2021: 1. Net Income was $ 50,000. 2. Land with a book value of $10,000 was sold for $25,000. 3. Paid off a $20,000 long-term note payable. 4. New equipment costing $5,000 was bought and paid for by issuing common shares, 5. No equipment was sold during the year. 6. A new loan for $65,000 was taken out during the year. Required: Prepare a statement of cash flows using the indirect method for the year ended December 31, 2021. MAKE SH IS IN PROPER FORMAT. You can use the template provided to help you with the cash flow statement. CASH FROM OPERATING ACTIVITIES Net Income CASH FROM INVESTING ACTIVITIES CASH FROM FINANCING ACTIVITIES CASH FROM FINANCING ACTIVITIES Increase in cash $40,000

Answer rating: 100% (QA)

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