Davis's 2021 income statement follows (ignore taxes): Revenues Sales Dividend revenue Gain on sale of investments...

   

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Davis's 2021 income statement follows (ignore taxes): Revenues Sales Dividend revenue Gain on sale of investments Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of building Income Tax Expense Net income $200,000 3,000 2,000 120,000 26,000 5,000 8,000 8,000 16,000 205,000 183,000 $ 22,000 Required: Prepare a statement of cash flows for Davis Corporation for the year ended 2021. Assets Cash COMPARATIVE BALANCE SHEET ACCOUNTS December 31 2021 December 31, 2021, and 2020 Accounts Receivable Less: Allowance for Doubtful Accounts Inventory Dividend Receivable Investments Land Buildings & Equip. Less: Accumulated depreciation Totals Liabilities Accounts Payable Salaries Payables Interest payable Income tax payable Note payable Bonds Payable Less: Discount on bonds Shareholders' Equity Common Stock Paid-in-capital-excess of par Retained earnings Less: Treasury stock (at cost) Total $ 33,000 45,500 (1,500) 55,000 3,000 7,000 70,000 231,000 (35,000) $408,000 13,000 2,000 4,000 7,000 22,000 98,000 (2,000) 210,000 25,000 39,000 (10,000) $408,000 2020 $ 20,000 48,000 (1,000) 50,000 2,000 10,000 40,000 250,000 (50,000) $369,000 20,000 5,000 2,000 8,000 0 70,000 (3,000) 200,000 20,000 47,000 0 $369,000 Additional data (all transactions occurred in 2021 unless otherwise specified): 1. There were no write-offs of uncollectible accounts in 2021. 2. A building that originally cost $30,000 with accumulated depreciation balance of $20,000 was sold for $2,000. 3. Investments costing $3,000 was sold during the year for $5,000. 4. Land was acquired by paying $8,000 cash and issuing a 13%, seven-year, $22,000 note payable to the seller. 5. New equipment was purchased for $11,000 cash. 6. On January 1, $28,000 of bonds was sold at face value. 7. On January 19, Davis issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $15 per share at that time. 8. Cash dividends of $15,000 were paid to shareholders. 9. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $10,000. Davis uses the cost method to account for treasury stock. Davis's 2021 income statement follows (ignore taxes): Revenues Sales Dividend revenue Gain on sale of investments Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of building Income Tax Expense Net income $200,000 3,000 2,000 120,000 26,000 5,000 8,000 8,000 16,000 205,000 183,000 $ 22,000 Required: Prepare a statement of cash flows for Davis Corporation for the year ended 2021. Assets Cash COMPARATIVE BALANCE SHEET ACCOUNTS December 31 2021 December 31, 2021, and 2020 Accounts Receivable Less: Allowance for Doubtful Accounts Inventory Dividend Receivable Investments Land Buildings & Equip. Less: Accumulated depreciation Totals Liabilities Accounts Payable Salaries Payables Interest payable Income tax payable Note payable Bonds Payable Less: Discount on bonds Shareholders' Equity Common Stock Paid-in-capital-excess of par Retained earnings Less: Treasury stock (at cost) Total $ 33,000 45,500 (1,500) 55,000 3,000 7,000 70,000 231,000 (35,000) $408,000 13,000 2,000 4,000 7,000 22,000 98,000 (2,000) 210,000 25,000 39,000 (10,000) $408,000 2020 $ 20,000 48,000 (1,000) 50,000 2,000 10,000 40,000 250,000 (50,000) $369,000 20,000 5,000 2,000 8,000 0 70,000 (3,000) 200,000 20,000 47,000 0 $369,000 Additional data (all transactions occurred in 2021 unless otherwise specified): 1. There were no write-offs of uncollectible accounts in 2021. 2. A building that originally cost $30,000 with accumulated depreciation balance of $20,000 was sold for $2,000. 3. Investments costing $3,000 was sold during the year for $5,000. 4. Land was acquired by paying $8,000 cash and issuing a 13%, seven-year, $22,000 note payable to the seller. 5. New equipment was purchased for $11,000 cash. 6. On January 1, $28,000 of bonds was sold at face value. 7. On January 19, Davis issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $15 per share at that time. 8. Cash dividends of $15,000 were paid to shareholders. 9. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $10,000. Davis uses the cost method to account for treasury stock.

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Answer STATEMENT OF CASH FLOW Cash flows from operating activities Cash Receipts ... View the full answer