The Technology Corporation sells computers, computer monitors, printers, and related accessories. Using the Technology Corporation’s following comparative Balance Sheets at December 31, 2021 and December 31, 2020, its IncomeStatement for the year ended December 31, 2021, and its Additional Information for 2021 prepare in good form its Statement of Cash Flows for the year ended December 31, 2021. Assume the corporation uses the indirect method for its Cash Flows from Operating Activities section of its Statement of Cash Flows.

Additional information for 2021:

1)The company purchased available-for-sale debt securities for cash. The company did not sell any of its available-for-sale securities during 2021.

2)Equipment was sold for cash.

3) Equipment in the amount of $39,000 was purchased for cash.

4) The company constructed an addition to its building in the amount of $350,000. The company paid a $50,000 cash payment with the balance due on a long-term notes payable. The company did not have any other additional borrowings during 2021 in the form of a long-term note payable. However, it did make payments on its long-term notes payable during 2021.

5) Land was sold for cash. No additional land was purchased.

6) The short-term note payable was not used for the purchase of inventory.

7) The company paid $51,000 on its short-term notes payable and borrowed additional funds under short-term notes payable.

8)The company issued the common stock for cash.

9)The company paid cash dividends.
 

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Technology Corporation Balance Sheets December 31, 2021 and December 31, 2020 2021 2020 Increase/(Decrease) Assets: Cash $ 36,500 $ 27,500 $9,000 Trading debt securities Available-for-sale debt securities Accounts receivable Interest receivable 11,500 11,500 21,000 (12,700) (16,200) 8,300 56,700 72,900 400 400 83,400 Inventory Notes receivable, due April 30, 2024 51,600 31,800 15,000 15,000 Land 410,000 275,000 135,000 Building Accumulated depreciation - building Equipment Accumulated depreciation - equipment 920,000 920,000 (184,800) (151,200) 33,600 137,500 131,900 5,600 (58,400) 32,500 $1,468,600 (52,600) 35,000 $1,331,100 5,800 Patent (2,500) Total assets Liabilities and Stockholders' Equity: Accounts payable $56,200 $31,300 $24,900 Wages payable Interest payable Notes payable Preferred stock, 8%, $100 par Common stock, $5 par 8,300 3,650 4,650 13,450 15,600 (2,150) (18,000) 915,000 933,000 16,400 12,000 4,400 43,000 35,000 8,000 Add'l. paid-in capital – common stock Retained earnings 198,450 159,250 39,200 224,800 141,300 83,500 Treasury stock Total liabilities & stockholders' equity 7,000 7,000 $1,468,600 $1,331,100 Technology Corporation Balance Sheets December 31, 2021 and December 31, 2020 2021 2020 Increase/(Decrease) Assets: Cash $ 36,500 $ 27,500 $9,000 Trading debt securities Available-for-sale debt securities Accounts receivable Interest receivable 11,500 11,500 21,000 (12,700) (16,200) 8,300 56,700 72,900 400 400 83,400 Inventory Notes receivable, due April 30, 2024 51,600 31,800 15,000 15,000 Land 410,000 275,000 135,000 Building Accumulated depreciation - building Equipment Accumulated depreciation - equipment 920,000 920,000 (184,800) (151,200) 33,600 137,500 131,900 5,600 (58,400) 32,500 $1,468,600 (52,600) 35,000 $1,331,100 5,800 Patent (2,500) Total assets Liabilities and Stockholders' Equity: Accounts payable $56,200 $31,300 $24,900 Wages payable Interest payable Notes payable Preferred stock, 8%, $100 par Common stock, $5 par 8,300 3,650 4,650 13,450 15,600 (2,150) (18,000) 915,000 933,000 16,400 12,000 4,400 43,000 35,000 8,000 Add'l. paid-in capital – common stock Retained earnings 198,450 159,250 39,200 224,800 141,300 83,500 Treasury stock Total liabilities & stockholders' equity 7,000 7,000 $1,468,600 $1,331,100

Answer rating: 100% (QA)

Cash flow statement For the year ended December 31 2021 Cash flow from operating activities Net inco... View the full answer