Instructions:

Using the balance sheet and additional information provided prepare an indirect cash flow analysis for the year ended December 31, 2021.

Winter Corp
Comparative Balance Sheet
For the Years Ending 2021 and 2020
Assets
	2021	2020
Cash	$202,470	$30,000
Marketable Securities	36,000	47,000
Accounts Receivable	68,000	72,000
Inventory	96,000	89,000
Prepaid Insurance	3,000	3,500
Equipment	340,000	280,000
Less Accumulated Depreciation	-167,000	-112,000
Building	750,000	600,000
Less Accumulated Depreciation	-102,270	-100,000
Patent	19,000	20,000
Total Assets	$1,245,200	$929,500
Liabilities and Owners Equity
Short-term Notes Payable	$140,000	$50,000
Accounts Payable	10,000	15,000	($5,000)
Salaries Payable	10,000	8,000	$2,000
Interest Payable	9,000	1,000	$8,000
Income Tax Payable	14,200	10,000	$4,200
Mortgage Payable	80,000	100,000
Bonds Payable	150,000	200,000
Common Stock	732,000	516,000
Retained Earnings	100,000	29,500
Total Liabilities and Owners Equity	$1,245,200	$929,500

Additional Information:

1. Sales equal $ 980,000.

2. Cost of Goods Sold equals 60% of sales

3. Operating income is $ 200,000.

4. Interest expense is $ 12,000.

5. Income Tax rate is 35%.

6. Cost of equipment sold was $ 80,000.

7. Purchased equipment paying 40% down. The equipment was financed through shortterm loans.

8. Accumulated depreciation on equipment sold was $ 20,000.

9. Gain on equipment sold was $ 3,000.

10. Purchased building by issuing common stock for $ 200,000 and paying $ 50,000 in cash

11. Book value of building sold was $75,000. Received $ 69,000 in cash from sale of building.

12. Purchased marketable securities for $ 9000.

13. Sold marketable securities at a loss of $ 1000.