1. create statements of cash flows (indirect and direct method) (Learning Objectives 1, 2, & 3)
   1. Graphic Company, Inc., has the following comparative balance sheet as of March 31, 2021.

• Requirements
  1. 1. Prepare the statement of cash flows for Graphic Company, Inc., for the year ended March 31, 2021, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
  2. 2. Also prepare a schedule of cash flows from operations using the direct method.

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A B C 8 Inventory 9 Prepaid insurance 10 123 2 3 4 Assets 567800 Current assets: Cash Accounts receivable Graphic Company, Inc. Comparative Balance Sheets March 31, 2021 and 2020 2021 2020 Increase (Decrease) 55,400 $ 14,900 40,500 51,600 53,300 (1,700) 64,900 59,800 5,100 4,100 5,300 (1,200) Total current assets $ 176,000 $ 133,300 11 12 Land 34,000 95,500 (61,500) 13 Equipment, net 71,500 70,400 1,100 14 Investments 9,800 6,900 2,900 15 Total assets $ 291,300 $ 306,100 16 17 Liabilities 18 Current liabilities: 19 Accounts payable $ 4,900 $ 3,500 1,400 20 Note payable, short-term 43,200 48,500 (5,300) 21 Income tax payable 13,800 15,100 (1,300) 22 Salary payable 23 Interest payable 9,400 12,400 (3,000) 8,200 7,000 1,200 24 Accrued liabilities 2,600 3,700 (1,100) 25 Total current liabilities $ 82,100 $ 90,200 26 27 Long-term liabilities 48,300 93,700 (45,400) 28 Total liabilities $ 130,400 $ 183,900 29 30 Stockholders' equity 31 Common stock 69,400 61,900 7,500 32 Retained earnings 91,500 60,300 31,200 33 Total stockholders' equity $ 160,900 $ 122,200 34 35 Total liabilities and equity $ 291,300 $ 306,100 36 A B C 8 Inventory 9 Prepaid insurance 10 123 2 3 4 Assets 567800 Current assets: Cash Accounts receivable Graphic Company, Inc. Comparative Balance Sheets March 31, 2021 and 2020 2021 2020 Increase (Decrease) 55,400 $ 14,900 40,500 51,600 53,300 (1,700) 64,900 59,800 5,100 4,100 5,300 (1,200) Total current assets $ 176,000 $ 133,300 11 12 Land 34,000 95,500 (61,500) 13 Equipment, net 71,500 70,400 1,100 14 Investments 9,800 6,900 2,900 15 Total assets $ 291,300 $ 306,100 16 17 Liabilities 18 Current liabilities: 19 Accounts payable $ 4,900 $ 3,500 1,400 20 Note payable, short-term 43,200 48,500 (5,300) 21 Income tax payable 13,800 15,100 (1,300) 22 Salary payable 23 Interest payable 9,400 12,400 (3,000) 8,200 7,000 1,200 24 Accrued liabilities 2,600 3,700 (1,100) 25 Total current liabilities $ 82,100 $ 90,200 26 27 Long-term liabilities 48,300 93,700 (45,400) 28 Total liabilities $ 130,400 $ 183,900 29 30 Stockholders' equity 31 Common stock 69,400 61,900 7,500 32 Retained earnings 91,500 60,300 31,200 33 Total stockholders' equity $ 160,900 $ 122,200 34 35 Total liabilities and equity $ 291,300 $ 306,100 36