Using the information presented in Problem 13.4A, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities by the indirect method. Explain why the decline in accounts receivable over the year was added to net income in computing the cash flows from operating activities. LO13-2, LO13-3, LO13-4, LO13-6, LO13-8 PROBLEM 13.6A Preparing a Statement of Cash Flows: A Comprehensive Problem without a Worksheet company's balance sheet accounts. You are the controller for 21st Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the 21ST CENTURY TECHNOLOGIES INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Revenue: Net sales Interest revenue $3,200,000 Gain on sales of marketable securities 40,000 Total revenue and gains 34.000 Costs and expenses: $3,274,000 Cost of goods sold $1,620,000 Operating expenses (including depreciation of $150,000) 1,240,000 Interest expense 12,000 Income tax expense 100,000 Loss on sales of plant assets 12,000 Total costs, expenses, and losses 3.014.000 Net income . $ 260,000 Additional Information 1. Accounts receivable increased by $60,000. 2. Accrued interest receivable decreased by $2,000. 3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreased by $16,000. page 614 1. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities for operating expenses decreased by $8,000. 5. The liability for accrued interest payable increased by $4,000 during the year. 6. The liability for accrued income taxes payable decreased by $14,000 during the year 613 / 1155 9:12 AM 59.F Cloudy 5/19/2024 P PowerChart Organi.. HIDE_CAPTION Spok Web . [InPrivam SS Deskt... Assign Manager - P... MBS Direct: Financing OMPUTERUsing the information presented in Problem 13.4A, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities by the indirect method. Explain why the decline in accounts receivable over the year was added to net income in computing the cash flows from operating activities. LO13-2, LO13-3, LO13-4, LO13-6, LO13-8 PROBLEM 13.6A Preparing a Statement of Cash Flows: A Comprehensive Problem without a Worksheet company's balance sheet accounts. You are the controller for 21st Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the 21ST CENTURY TECHNOLOGIES INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Revenue: Net sales Interest revenue $3,200,000 Gain on sales of marketable securities 40,000 Total revenue and gains 34.000 Costs and expenses: $3,274,000 Cost of goods sold $1,620,000 Operating expenses (including depreciation of $150,000) 1,240,000 Interest expense 12,000 Income tax expense 100,000 Loss on sales of plant assets 12,000 Total costs, expenses, and losses 3.014.000 Net income . $ 260,000 Additional Information 1. Accounts receivable increased by $60,000. 2. Accrued interest receivable decreased by $2,000. 3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreased by $16,000. page 614 1. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities for operating expenses decreased by $8,000. 5. The liability for accrued interest payable increased by $4,000 during the year. 6. The liability for accrued income taxes payable decreased by $14,000 during the year 613 / 1155 9:12 AM 59.F Cloudy 5/19/2024 P PowerChart Organi.. HIDE_CAPTION Spok Web . [InPrivam SS Deskt... Assign Manager - P... MBS Direct: Financing OMPUTEROperating expenses (including depreciation of $150,000) Interest expense . $1,620,000 Income tax expense 1,240,000 Loss on sales of plant assets 42,000 100.000 Total costs, expenses, and losses 12,000 Net income . . . . - - 3,014,0 $ 260.00 Additional Information 1. Accounts receivable increased by $60,000. 2. Accrued interest receivable decreased by $2,000. 3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreased by $16,000. 4. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities for operating expenses decreased by $8,000. page 614 5. The liability for accrued interest payable increased by $4,000 during the year. 6. The liability for accrued income taxes payable decreased by $14.000 during the year. 7. The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts Debit Credit Entries Entries Marketable Securities $ 60,000 $ 38,000 44,000 28,000 Notes Receivable (cash loans made to borrowers) 500,000 36,000 Plant Assets (see paragraph 8) 92.000 82,000 Notes Payable (short-term borrowing) 20,000 Capital Stock . 160,000 Additional Paid-in Capital-Capital Stock 120,000 260,000 Retained Earnings (see paragraph 9) 9:13 AM 59.F Cloudy 5/19/2024 HIDE CAPTION MBS Direct: Financia.. Spok Web - [InPrivat Pu PowerChart Organi.. Assign Manager - P. ESS Deskt... CLERK COMPUTER