You must use the information provided to prepare a statement of cash flows for the year ended December 31, 2021. Use the indirect method to determine cash flows from operating activities.

The financial statements and additional information of Borik Incorporado are included:

Additional Infomation:

1. The company paid in cash a notes payable at its maturity value of $30,000.
2. The only changes to the retained earnings account were net income and cash dividend payments .
3. New equipment was purchased by paying $57,600 in cash.
4. Equipment was sold with an original cost of $48,600 and accumulated depreciation of $40,600 generating a profit of $2,000. (You must reconstruct the entry to determine the cash received at the sale).
5. The company issued common stock for cash.
6. Prepaid expenses and wages payable relate to operating expenses in the income statement.
7. All inventory purchases and sales were made on credit.

\begin{tabular}{lrr} \multicolumn{4}{c}{ BUILT-IN BORIKE } & \\ Comparative Balance Sheets & \\ At December 31 & 2021 & 2020 \\ Assets & & \\ Cash & $87,500 & $44,000 \\ Accounts receivable, net & 65,000 & 51,000 \\ Inventory & 63,800 & 86,500 \\ Prepaid expenses & 4,400 & 5,400 \\ Total current assets & 220,700 & 186,900 \\ Equipment & 124,000 & 115,000 \\ Accumulated depreciation-Equipment & (27,000,, & (9,000) \\ \hline Total assets & $317,700 & $292,900 \\ Liabilities and Equity & & \\ Accounts payable & $25,000 & $30,000 \\ Wages payable & 6,000 & 15,000 \\ Income taxes payable & 3,400 & 3,800 \\ \hline Total current liabilities & 34,400 & 48,800 \\ Notes payable (long term) & 30,000 & 60,000 \\ \hline Total liabilities & 64,400 & 108,800 \\ Equity & & \\ Common stock, $5 par value & 220,000 & 160,000 \\ Retained earnings & 33,300 & 24,100 \\ \hline Total liabilities and equity & $317,700 & $292,900 \\ \hline \end{tabular}