Assets Cash Notes Receivable Supplies & Inventory Prepaid expense Long-term investments Machines and tools Accumulated depreciation-equipment...

    

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Assets Cash Notes Receivable Supplies & Inventory Prepaid expense Long-term investments Machines and tools Accumulated depreciation-equipment Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable (long-term) Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Dec 31, 2021 $117,000 24,000 27,000 10,500 0 55,500 (21,000) $213.000 $ 25,500 55,500 60,000 72.000 $213.000 Dec.31.2020 $19,500 21,000 40,500 18,000 27,000 48,000 (15.000) $159,000 $ 10,500 70,500 34,500 43.500 $159,000 K Income Statement Information (2021): 1. Net income for the year ending December 31, 2021 is $43,500 2. Depreciation expense is $6,000 3. There is a loss of $3,000 resulted from the sale of long-term investment. Additional information (2021): 1. All sales and purchases of inventory are on account (or credit). 2 Received cash for the sale of long-term investments that had a cost of $27,000, yielding a $3,000 loss 3. Cash dividends paid is $15,000 4. The company purchased new machines and tools for $7,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021 Assets Cash Notes Receivable Supplies & Inventory Prepaid expense Long-term investments Machines and tools Accumulated depreciation-equipment Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable (long-term) Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Dec 31, 2021 $117,000 24,000 27,000 10,500 0 55,500 (21,000) $213.000 $ 25,500 55,500 60,000 72.000 $213.000 Dec.31.2020 $19,500 21,000 40,500 18,000 27,000 48,000 (15.000) $159,000 $ 10,500 70,500 34,500 43.500 $159,000 K Income Statement Information (2021): 1. Net income for the year ending December 31, 2021 is $43,500 2. Depreciation expense is $6,000 3. There is a loss of $3,000 resulted from the sale of long-term investment. Additional information (2021): 1. All sales and purchases of inventory are on account (or credit). 2 Received cash for the sale of long-term investments that had a cost of $27,000, yielding a $3,000 loss 3. Cash dividends paid is $15,000 4. The company purchased new machines and tools for $7,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021