Prepare the statement of cash flows using the indirect method. Disclose any noncash transac- tions in...

   

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Prepare the statement of cash flows using the indirect method. Disclose any noncash transac- tions in an accompanying note. Net sales Gain on sale of investment Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income E-PHONES, INC. Income Statement For the year ended December 31, 2021 Assets Current assets: Cash Accounts receivable Inventory Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Accounts payable Income tax payable Long-term liabilities: Bonds payable Stockholders' equity. Common stock Liabilities and Stockholders' Equity Current liabilities: $1,100,000 450,000 25,000 217.000 E-PHONES, INC. Balance Sheets December 31, 2021 and 2020 2021 $ 32,000 32,000 100,000 2020 $2,200,000 5,000 1,792.000 $ 413,000 0 50,000 280,000 180,000 200,000 140,000 0 $ 48,000 40,000 70,000 (53,000) (28,000) $591,000 $500,000 Retained earnings Total liabilities and stockholders' equity $591,000 $ 52,000 $ 62,000 55,000 12,000 Increase (1) or Decrease (D) $ 16,000 (D) 8,000 (D) 30,000 $ 10,000 (D) 43,000 200,000 200,000 (D) 200,000 100,000 100,000 284,000 126,000 158,000 $500,000 50,000 (D) 100.000 ( 60,000 ( 25,00000 Additional Information for 2021: 1. Sold an investment in stock costing $50.000 for $55.000, resulting in a $5,000 gain on sale of investment 2. Purchased $100,000 in land, issuing $100,000 of common stock as payment. No cash was exchanged in the transaction 3. Purchased equipment for $60,000 cash 4. Retired the $200,000 balance in bonds payable at the beginning of the year. 5. Declared and paid a cash dividend of $255.000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transa tions in an accompanying note. Prepare the statement of cash flows using the indirect method. Disclose any noncash transac- tions in an accompanying note. Net sales Gain on sale of investment Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income E-PHONES, INC. Income Statement For the year ended December 31, 2021 Assets Current assets: Cash Accounts receivable Inventory Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Accounts payable Income tax payable Long-term liabilities: Bonds payable Stockholders' equity. Common stock Liabilities and Stockholders' Equity Current liabilities: $1,100,000 450,000 25,000 217.000 E-PHONES, INC. Balance Sheets December 31, 2021 and 2020 2021 $ 32,000 32,000 100,000 2020 $2,200,000 5,000 1,792.000 $ 413,000 0 50,000 280,000 180,000 200,000 140,000 0 $ 48,000 40,000 70,000 (53,000) (28,000) $591,000 $500,000 Retained earnings Total liabilities and stockholders' equity $591,000 $ 52,000 $ 62,000 55,000 12,000 Increase (1) or Decrease (D) $ 16,000 (D) 8,000 (D) 30,000 $ 10,000 (D) 43,000 200,000 200,000 (D) 200,000 100,000 100,000 284,000 126,000 158,000 $500,000 50,000 (D) 100.000 ( 60,000 ( 25,00000 Additional Information for 2021: 1. Sold an investment in stock costing $50.000 for $55.000, resulting in a $5,000 gain on sale of investment 2. Purchased $100,000 in land, issuing $100,000 of common stock as payment. No cash was exchanged in the transaction 3. Purchased equipment for $60,000 cash 4. Retired the $200,000 balance in bonds payable at the beginning of the year. 5. Declared and paid a cash dividend of $255.000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transa tions in an accompanying note.

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