In 2021, the company sold long-term investments for $36,000.

Prepare a statement of cash flows on December 31, 2021, using the indirect method in "good form".

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Cash and cash equivalents Accounts receivable Inventory Long term Investments Land ABC CORPORATION Balance Sheet December 31, 2021 and 2020 Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patents Total Assets Accounts Payable Salaries Payable Note Payable (Due 2023) Bonds Payable (Due 2026) Common Stock ($2 par value) Retained Earnings Assets Liabilities Dec 31, 2021 Dec 31, 2020 Stockholders Equity $115,000 121,000 60,000 45,000 80,000 139,000 -27,000 20,000 0 16,000 $569,000 $65,000 8,000 20,000 48,000 222,000 206,000 $569,000 $72,000 117,000 48,000 75,000 60,000 108,000 -18,000 0 0 20,000 $482,000 $47,000 5,000 0 60,000 200,000 170,000 $482,000 $ Change Sales Cost of Goods Sold Gross Profit ABC CORPORATION Income Statement For the year ending December 31, 2021 Operating Expenses Salaries expense Depreciation expense - buildings Amortization expense Total operating expenses Income from Operations Other revenue and Gains Gain on sale of investments Other expenses Interest Expense Income before taxes Income tax expense Net Income $77,000 9,000 4,000 6,000 5,000 $360,000 190,000 $170,000 90,000 $80,000 1,000 $81,000 25,000 $56,000 Cash and cash equivalents Accounts receivable Inventory Long term Investments Land ABC CORPORATION Balance Sheet December 31, 2021 and 2020 Buildings Accumulated Depreciation Equipment Accumulated Depreciation Patents Total Assets Accounts Payable Salaries Payable Note Payable (Due 2023) Bonds Payable (Due 2026) Common Stock ($2 par value) Retained Earnings Assets Liabilities Dec 31, 2021 Dec 31, 2020 Stockholders Equity $115,000 121,000 60,000 45,000 80,000 139,000 -27,000 20,000 0 16,000 $569,000 $65,000 8,000 20,000 48,000 222,000 206,000 $569,000 $72,000 117,000 48,000 75,000 60,000 108,000 -18,000 0 0 20,000 $482,000 $47,000 5,000 0 60,000 200,000 170,000 $482,000 $ Change Sales Cost of Goods Sold Gross Profit ABC CORPORATION Income Statement For the year ending December 31, 2021 Operating Expenses Salaries expense Depreciation expense - buildings Amortization expense Total operating expenses Income from Operations Other revenue and Gains Gain on sale of investments Other expenses Interest Expense Income before taxes Income tax expense Net Income $77,000 9,000 4,000 6,000 5,000 $360,000 190,000 $170,000 90,000 $80,000 1,000 $81,000 25,000 $56,000

Answer rating: 100% (QA)

Cash from operating activities Net income 56000 Add noncash expenses Depreciation 9000 ... View the full answer