The following balance sheet $($BS$)$ and income statement $($IS$)$ are available for Little Bit Inc.

Prepare a statement of cash flows $($CF$)$ for $2021$: 

 

Balance Sheet December $31,$

$20212020$

Cash $ $40,000\mathrm{.}00$ $ $24,000\mathrm{.}00$

Accounts Receivable $($net$)$ $ $48,000\mathrm{.}00$ $ $41,500\mathrm{.}00$

Inventory $ $43,000\mathrm{.}00$ $ $34,500\mathrm{.}00$

Prepaid Expenses $ $19,000\mathrm{.}00$ $ $15,000\mathrm{.}00$

Total Current Assets $ $150,000\mathrm{.}00$ $ $115,000\mathrm{.}00$

Plant and Equipment $ $67,000\mathrm{.}00$ $ $61,000\mathrm{.}00$

Less accumulated depreciation $ $(41,000\mathrm{.}00)$ $ $(23,000\mathrm{.}00)$

Plant and Equipment $($net$)$ $ $26,000\mathrm{.}00$ $ $38,000\mathrm{.}00$

Long$-$Term Investments $ $90,000\mathrm{.}00$ $ $89,000\mathrm{.}00$

Total Assets $ $266,000\mathrm{.}00$ $ $242,000\mathrm{.}00$

Accounts Payable $ $13,000\mathrm{.}00$ $ $11,000\mathrm{.}00$

Accrued Liabilities $ $55,000\mathrm{.}00$ $ $71,000\mathrm{.}00$

Total Current Liabilities $ $68,000\mathrm{.}00$ $ $82,000\mathrm{.}00$

Long$-$Term Debt $ $25,000\mathrm{.}00$ $ $8,000\mathrm{.}00$

Deferred Taxes $ $4,000\mathrm{.}00$ $ $3,500\mathrm{.}00$

Total Liabilities $ $97,000\mathrm{.}00$ $ $93,500\mathrm{.}00$

Common Stock $($$$1$ par$)$ and additional paid$-$in capital $ $112,000\mathrm{.}00$ $ $97,000\mathrm{.}00$

Retained earnings $ $57,000\mathrm{.}00$ $ $51,500\mathrm{.}00$

Total Liabilities and Equity $ $266,000\mathrm{.}00$ $ $242,000\mathrm{.}00$

Income Statement for $2021$

Sales $ $155,000\mathrm{.}00$

Cost of goods sold $ $83,000\mathrm{.}00$

Gross Profit $ $72,000\mathrm{.}00$

Selling and administrative $ $45,700\mathrm{.}00$

Depreciation $ $18,000\mathrm{.}00$

Total Operating Expenses $ $63,700\mathrm{.}00$

Operating Profit $ $8,300\mathrm{.}00$

Interest Expense $ $2,000\mathrm{.}00$

Earnings before tax $ $6,300\mathrm{.}00$

Tax Expense $ $800\mathrm{.}00$

Net Income $ $5,500\mathrm{.}00$

Answer rating: 100% (QA)

Statement of Cash Flows for Little Bit Inc for 2021 Operating Activities Net In... View the full answer