Using a Comparative Balance Sheet and a current Income Statement, prepare a Statement of Cash Flows using the Direct and Indirect Methods.

BUS132 Cash Flow Cory Tequila Company Balance Sheet December 31, 2021 and 2020 2021 2020 Assets Cash $827,000 $580,000 Accounts Receivable $1,242,000 $1,303,000 Inventories $652,000 $362,000 Prepaid Operating Expenses $168,000 $67,000 Land $1,080,000 $580,000 Equipment $801,000 $599,000 Accumulated Depr-Equipment ($120,000) ($80,000) Total Assets $4,650,000 $3,411,000 Liabilities Accounts Payable $361,000 $250,000 Salaries Payable $628,000 $592,000 Income Tax Payable $630,000 $411,000 Note Payable $500,000 $0 Total Liabilities $2,119,000 $1,253,000 Stockholders Equity Common Stock $500,000 $275,000 Paid in Capital in Excess of Par $1,525,000 $1,350,000 Retained Earnings $506,000 $533,000 Total Stockholders Equity $2,531,000 $2,158,000 Total Liabilities & Stockholders Equity $4,650,000 $3,411,000 Cory Tequila Company Income Statement Year Ended December 31, 2021 Sales $8,154,000 Cost of Goods Sold $4,240,000 Gross Profit $3,914,000 Operating Expenses: Depreciation Expense $40,000 Salaries Expense $990,000 Other Operating Expenses $889,000 Total Operating Expenses $1,919,000 Net Income Before Taxes $1,995,000 Income Tax Expense $798,000 Net Income $1,197,000 Additional Information Acquisition of Land was financed with a Long-Term Note Payable Equipment was Purchased for $202,000 Common Stock was issued for Cash $1,224,000 in Cash Dividends were paid Required: Prepare the Statement of Cash Flows Using the Direct Method and Indirect Method

ear Ended December 31, 2021 Cash Flows from Operating Activities: Cash Collected from Customers Cash Payments Total Cash Payments Cash Flows from Operating Activities Cash Flows From Investing Activities: Purchased Equipment Cash Flows From Investing Activities Cash Flows From Financing Activities: Sale of Common Stock Paid Dividends Cash Flows From Financing Activities Net Increase in Cash Beginning Cash 580,000 Ending Cash

Cory Tequila Company Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Cash Flows from Operating Activities: Net Income $1,197,000 Adjustments to Net Income Depreciation Net Decrease in Receivables Net Increase in Inventory Net Increase in Prepaid Expenses Net Increase in Accounts Payable Net Increase in Salaries Payable Net Increase in Taxes Payable Total Adjustments Net Cash Flows Provided by Operating Activities