Prepare cash flow statement for the year 2021. Note: (i) Net Income can be 5 points...

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Prepare cash flow statement for the year 2021. Note: (i) Net Income can be 5 points calculated by making Retained Earnings Statement or Account, (ii) Depreciation expense of 2021 can be calculated by taking the difference in accumulated depreciation accounts balances of 2020 and 2021. Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85,000) $2,739,000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40,000) $2,500.000 Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets Liabilities and Stockholders' Equity Accounts payable Salaries and wages payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 104,000 42,000 1,150,000 1,338,000 I 105 000 $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70,000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was 3. Land was acquired by issuing common stock. urchased for cash Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method. Prepare cash flow statement for the year 2021. Note: (i) Net Income can be 5 points calculated by making Retained Earnings Statement or Account, (ii) Depreciation expense of 2021 can be calculated by taking the difference in accumulated depreciation accounts balances of 2020 and 2021. Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85,000) $2,739,000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40,000) $2,500.000 Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets Liabilities and Stockholders' Equity Accounts payable Salaries and wages payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 104,000 42,000 1,150,000 1,338,000 I 105 000 $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70,000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was 3. Land was acquired by issuing common stock. urchased for cash Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method.

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Answer to Question INDIRECT METHOD ABC Inc Statement of Cash Flows For the year ended Dec 312021 Par... View the full answer