Problem 11-2B Classify items and prepare the statement of cash flows (LO11-1, 11-3, 11-4, 11-5) Natalie King has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s). CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2021 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash $ (55,000 ) Cash at the beginning of the period 75,000 Cash at the end of the period $ 20,000 Below, in random order, are line items to be included in the statement of cash flows. Cash received from the sale of land (no gain or loss) $ 2,500 Issuance of common stock 225,000 Depreciation expense 21,000 Increase in accounts receivable 55,000 Increase in accounts payable 10,000 Loss on sale of land 6,500 Purchase of equipment 215,000 Increase in inventory 25,000 Increase in prepaid rent 10,000 Payment of dividends 35,000 Net income 65,000 Repayment of notes payable 45,000 Required: Prepare the statement of cash flows for CPU Hardware Designers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands (i.e., 10,000,000 should be entered as "10,000).)

Problem 11-2B Classify Items and prepare the statement of cash flows (LO11-1, 11-3, 11-4, 11-5) Natalie King has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s). CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2821 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash Cash at the beginning of the period $(55,000) 75.000 $ 20,000 Cash at the end of the period Below, in random order, are line items to be included in the statement of cash flows. Cash received from the sale of land (no gain or loss) $ 2,500 Issuance of common stock 225,000 Depreciation expense 21,000 Increase in accounts receivable 55,000 Increase in accounts payable 10,000 Loss on sale of land 6,500 215,000 25,000 Purchase of equipment Increase in inventory Increase in prepaid rent Payment of dividends 10,000 35,000 Net income. Repayment of notes payable 65,000 45,000 Required: Prepare the statement of cash flows for CPU Hardware Designers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands (I.e., 10,000,000 should be entered as "10,000).) CPU HARDWARE DESIGNERS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period