80.2K

Verified Solution

Link Copied!

Cash, January 1 Cash, December 31 Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities Net cash used by operating activities Net decrease in cash Net increase in cash smber, Inc. follow: by paying $23,800 cash and issuing a $65,200 bank loan payable. Additional information regarding 2021: 1. Prepaid expenses and property tax payable relate to operating expenses. 2. New equipment costing $89,000 was purchased for $23,800 cash and a $65,200 long-term bank loan payable. 3. Old equipment having an original cost of $57,500 was sold for $1,600. 4. Accounts payable relate to inventory suppliers. 5. Some of the bank loan was repaid during the year. 6. A dividend was paid during the year. 7. Operating expenses include $46,500 of depreciation expense and a $5,000 loss on disposal of equipment. 8. Common shares were issued for $50,000 cash during the year and some common shares were bought back and retired at t cost they were originally issued at. Decrease in refund liability Payment of cash dividends To suppliers Increase in inventory For operating expenses Decrease in accounts payable Decrease in prepaid expenses Increase in accounts receivable Purchase of equipment Loss on disposal of equipment Decrease in estimated inventory returns For income taxes Gain on disposal of equipment Increase in estimated inventory returns Decrease in inventory Repayment of bank loan payable Depreciation expense Repurchase of common shares Increase in refund liability Increase in accounts payable Proceeds from disposal of equipment For interest Decrease in property taxes payable Purchase of land Decrease in accounts receivable Increase in property taxes payable Sale of common shares Net income Sale of land Unrealized gain on trading investments Increase in prepaid expenses Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. 15,000 or

Answer & Explanation Solved by verified expert

See Answer