My Company's most recent balance sheet, income statement, and other important information for 2021 are presented...

   

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My Company's most recent balance sheet, income statement, and other important information for 2021 are presented as follows: ASSETS Cash and cash equivalents Accounts and notes receivable, net Inventories Prepaid expenses Assets, Current Property, Plant and Equipment Accumulated Depreciation Long term Investments Total Assets LIABILITIES AND EQUITY Accounts payable Income tax payable Liabilities, Current Bonds Payable Total Liabilities Common stock Retained Earings Total Equity Liabilities and Equity Sales Cost of goods sold Gross Margin Operating expenses Depreciation expense Operating income Interest expense Loss on sale of equipment Income before taxes Income tax expense Net income My Company Consolidated Balance Sheet MyCompany Consolidated Statement of Income As of the end of 2021 $ 188,000 80,000 120,000 9,000 397,000 758,000 (225,000) 130,000 1,060,000 95,000 32,000 127,000 48,000 175,000 545,000 440,000 985,000 $1,160,000 Ending 2021 $ 720,000 420,000 300,000 170.000 37,000 93,000 7,000 5,000 81,000 32,000 49,000 2020 $ 250,000 75,000 125,000 4,000 454,000 705,000 (188,000) 82,000 1,053,000 78,000 40,000 118,000 32,000 150,000 500,000 403,000 903,000 $1,053,000 Additional data for 2021 are as follows: • Sold equipment with a book value of $30,000 (= $40,000 cost $10,000 accumulated depreciation) for $28,000 cash • Purchased equipment for $96,000 cash • There were no sales of long-term investments (Hint: Solve for the purchase of long-term investments.) • Issued bonds for $16,000 cash Repurchased common stock (treasury shares) for $45,000 cash • Declared and paid $12,000 in cash dividends Required: prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method. • Briefly describe the major changes in cash identified in the statement of cash flows. My Company's most recent balance sheet, income statement, and other important information for 2021 are presented as follows: ASSETS Cash and cash equivalents Accounts and notes receivable, net Inventories Prepaid expenses Assets, Current Property, Plant and Equipment Accumulated Depreciation Long term Investments Total Assets LIABILITIES AND EQUITY Accounts payable Income tax payable Liabilities, Current Bonds Payable Total Liabilities Common stock Retained Earings Total Equity Liabilities and Equity Sales Cost of goods sold Gross Margin Operating expenses Depreciation expense Operating income Interest expense Loss on sale of equipment Income before taxes Income tax expense Net income My Company Consolidated Balance Sheet MyCompany Consolidated Statement of Income As of the end of 2021 $ 188,000 80,000 120,000 9,000 397,000 758,000 (225,000) 130,000 1,060,000 95,000 32,000 127,000 48,000 175,000 545,000 440,000 985,000 $1,160,000 Ending 2021 $ 720,000 420,000 300,000 170.000 37,000 93,000 7,000 5,000 81,000 32,000 49,000 2020 $ 250,000 75,000 125,000 4,000 454,000 705,000 (188,000) 82,000 1,053,000 78,000 40,000 118,000 32,000 150,000 500,000 403,000 903,000 $1,053,000 Additional data for 2021 are as follows: • Sold equipment with a book value of $30,000 (= $40,000 cost $10,000 accumulated depreciation) for $28,000 cash • Purchased equipment for $96,000 cash • There were no sales of long-term investments (Hint: Solve for the purchase of long-term investments.) • Issued bonds for $16,000 cash Repurchased common stock (treasury shares) for $45,000 cash • Declared and paid $12,000 in cash dividends Required: prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method. • Briefly describe the major changes in cash identified in the statement of cash flows.

Answer rating: 100% (QA)

To prepare the statement of cash flows using the indirect method for the year ended December 31 2021 for My Company we need to follow several steps Heres how we do it 1 Start with net income from the ... View the full answer