Exercise 11-10B Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for a company, along with additional information, are provided below. Balance Sheets December 31, 2021 and 2020 2021 Assets Current assets: Cashi Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Additional Information for 2021: 1. Net income is $77,000, 2. The company purchases $112,000 in equipment. 3. Depreciation expense is $152,000. 4. The company repays $115,000 in notes payable. 5. The company declares and pays a cash dividend of $29,000. 2020 $ 112,700 $ 131,800 81,200 103,000 96,000 87,200 5,600 2,000 520,000 520,000 822,000 710,000 (436,000) (284,000) $1,208,500 $1,263,800 $ 107,000 6,900 9,600 $ 92,200 13,800 5,800 115,000 230,000 740,000 740,000 230,000 182,000 $1,208,500 $1,263,800 Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period