P11-3 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO11-2, 11-7 The comparative statements of financial position of Mikos Inc. as of December 31, 2023 and 2024 and its statement of earnings for the year ended December 31, 2024 are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2024 2023 Assets Cash $ 10,300 $18,300 Short-term investments 67,100 36,900 Accounts receivable 74,500 31,200 Inventories, at cost 56,600 41,300 Prepaid expenses 5,300 3,600 Land 50,2001 76,500 Property, plant, and equipment, net 285,200 185,500 Intangible assets 25,300 30,600 $574,500 $428,900 tiabilities and Shareholders' Equity Accounts payable $18,300 $42,600 Income tax payable. 8,600 2,300 Accrued liabilities: 11,300 -0- Long-term notes payable. 123,000 176,000 Share capital Retained earnings 226,000 66,500 187,300 141,500 $574,500 $428,900 Sales MIKOS INC. Statement of Earnings For the Year Ended December 31, 2024 Cost of sales Operating expenses Amortization expense-intangible assets Depreciation expense-property, plant, and equipment Interest expense Earnings before income taxes Income tax expense Net earnings $889,000 $443,000 234,000 5,300 34,300 13,300 729,900 159,100 47,730 $111,370 Additional information is as follows: a. Land was sold for cash at its carrying amount. b. Mikos sells its short-term investments within three months of purchasing them. c. Cash dividends were declared and paid in 2024. d. New equipment with a cost of $167,300 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $16,500 were paid in cash, and notes of $36,500 were converted to shares. Required: 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2024 by using the indirect method. (Negative answers should be indicated by a minus sign.) Cash flows from operating activities MIKOS INC Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net earnings to net cash provided by operating activities Net cash flows from operating activities Cash flows from investing activities 0 $ 0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows used for investing activities Cash flows from financing activities Net cash flows from financing activities Cash and short-term investments, beginning of year Cash and short-term investments, end of year S 0 0 0 0 $ 0