Question 2: (19 points)

The comparative balance sheets for Jellystone Park Corporation appear below:

JELLYSTONE PARK CORPORATION

Comparative Balance Sheet

Dec. 31, 2021 Dec. 31, 2020

Assets

Cash........................................................................................ $ 23,000 $ 12,000

Accounts receivable................................................................. 18,000 14,000

Prepaid expenses....................................................................... 6,000 9,000

Inventory.................................................................................... 27,000 18,000

Long-term investment in bonds.................................................. -0- 18,000

Equipment................................................................................. 60,000 30,000

Accumulated depreciationequipment............................ (18,000) (14,000)

Total assets................................................................ $ 116,000 $ 87,000

Liabilities and Shareholders' Equity

Accounts payable.................................................................. $ 21,000 $ 9,000

Bonds payable.......................................................................... 37,000 45,000

Common shares....................................................................... 40,000 23,000

Retained earnings................................................................ 18,000 10,000

Total liabilities and shareholders' equity................ $ 116,000 $ 87,000

Additional information:

1. Profit for the year ending December 31, 2021 was $ 20,000.

2. Cash dividends of $ 12,000 were declared and paid during the year.

3. Long-term investments in bonds that had an amortized cost of $ 18,000 were sold for $ 16,000.

Required:

Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method.