Clark Company's current year income statement, comparative balance sheets, and additional information follow. For the year....

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Clark Company's current year income statement, comparative balance sheets, and additional information follow. For the year. (1) all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended December 31, current yea the Cash T-account on the General Ledger tab to identify the sources and use negative values. Unadjusted Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method CLARK COMPANY Statement of Cash Flows (Direct Method) For Current Year Ended December 31 Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the December 31, current year, balance sheet above. Year 2021 represents current year from the problem statement. Cash flows from operating activities: Unadjusted Dates: December 31 to: December 31 CLARK COMPANY Trial Balance December 31, 2021 Account Title Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value CLARK COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 74,500 77,000 $86,700 59,000 279,000 255,000 2,600 3,300 433,100 404,000 219,000 (50,000) $ 602,100 55,100 150,000 (64,000) $ 490,000 119,000 10,000 17,000 72,100 129,000 79,000 59,000 151,100 188,000 189,500 170,000 Paid-in capital in excess of par, common stock 58,500 Retained earnings 203,000 132,000 Cash Total liabilities and equity 602,100 490,000 Accounts receivable, net Inventory CLARK COMPANY Income Statement For Current Year Ended December 31 Sales $ 768,000 Cost of goods sold 327,000 Gross profit 441,000 Operating expenses Depreciation expense $ 22,000 Other expenses 174,000 196,000 Other gains (losses) Loss on sale of equipment (6,500) Prepaid expenses Equipment Accumulated depreciation - Equipment Accounts payable Notes payable (short-term) Notes payable (long-term) Income before taxes 238,500 Common stock, $5 par value 42,800 Retained earnings Income taxes expense Net income Additional Information on Current Year Transactions $ 196,500 a. The loss on the cash sale of equipment was $6,500 (details in b). b. Sold equipment costing $55,000, with accumulated depreciation of $36,000, for $12,500 cash. c. Purchased equipment costing $124,000 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $70,000 cash to reduce the long-term notes payable. f. Issued 3,900 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $125,500. Total Debit Credit $ 86,700 Cash flows from investing activities: 59,000 255,000 3,300 150,000 64,000 119,000 Cash flows from financing activities: 10,000 59,000 170,000 132.000 $ 554,000 $ 554,000 Dates: D Clark Company's current year income statement, comparative balance sheets, and additional information follow. For the year. (1) all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended December 31, current yea the Cash T-account on the General Ledger tab to identify the sources and use negative values. Unadjusted Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method CLARK COMPANY Statement of Cash Flows (Direct Method) For Current Year Ended December 31 Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the December 31, current year, balance sheet above. Year 2021 represents current year from the problem statement. Cash flows from operating activities: Unadjusted Dates: December 31 to: December 31 CLARK COMPANY Trial Balance December 31, 2021 Account Title Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value CLARK COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 74,500 77,000 $86,700 59,000 279,000 255,000 2,600 3,300 433,100 404,000 219,000 (50,000) $ 602,100 55,100 150,000 (64,000) $ 490,000 119,000 10,000 17,000 72,100 129,000 79,000 59,000 151,100 188,000 189,500 170,000 Paid-in capital in excess of par, common stock 58,500 Retained earnings 203,000 132,000 Cash Total liabilities and equity 602,100 490,000 Accounts receivable, net Inventory CLARK COMPANY Income Statement For Current Year Ended December 31 Sales $ 768,000 Cost of goods sold 327,000 Gross profit 441,000 Operating expenses Depreciation expense $ 22,000 Other expenses 174,000 196,000 Other gains (losses) Loss on sale of equipment (6,500) Prepaid expenses Equipment Accumulated depreciation - Equipment Accounts payable Notes payable (short-term) Notes payable (long-term) Income before taxes 238,500 Common stock, $5 par value 42,800 Retained earnings Income taxes expense Net income Additional Information on Current Year Transactions $ 196,500 a. The loss on the cash sale of equipment was $6,500 (details in b). b. Sold equipment costing $55,000, with accumulated depreciation of $36,000, for $12,500 cash. c. Purchased equipment costing $124,000 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $70,000 cash to reduce the long-term notes payable. f. Issued 3,900 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $125,500. Total Debit Credit $ 86,700 Cash flows from investing activities: 59,000 255,000 3,300 150,000 64,000 119,000 Cash flows from financing activities: 10,000 59,000 170,000 132.000 $ 554,000 $ 554,000 Dates: D

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