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JBL Audio & Visual is doing really well. Management is considering expanding into additional product lines that complement their current product lines. This expansion would require additional capital assets, which would require a short-term bank loan, at least until the new product lines are ramped up. Nikki, the CFO has a great relationship with their bank and knows that her bank manager will require a statement of cash flows before they can begin to discuss the terms of the loan.

Nikki pulls out the recent balance sheet and gathers up the other necessary information.

JBL Audio & Visual Inc. Balance Sheet
	December 31, 2021	December 31, 2020
Cash	120,000	103,000
Accounts Receivable	520,000	508,000
Inventory	650,000	626,000
Prepaid Expenses	24,000	48,000
Total Current Assets	1,314,000	1,285,000
Investments	120,000	125,000
Plant & Equipment	2,600,000	2,000,000
Less: Accumulated depreciation	995,000	765,000
TOTAL Assets	3,039,000	2,645,000
Accounts Payable	638,000	445,000
Notes Payable	500,000	500,000
Accrued Expenses	51,000	70,000
Current Liabilities	1,189,000	1,015,000
Bonds Payable	180,000	100,000
TOTAL Liabilities	1,369,000	1,115,000
Preferred Stock	130,000	130,000
Common Stock	500,000	500,000
Retained Earnings	1,040,000	900,000
TOTAL Shareholders Equity	1,670,000	1,530,000
TOTAL Liabilities and Shareholders Equity	$3,039,000	$2,645,000

Additional Information:

• Net income 2021 was $315,000
• Cash dividends of $150,000 were declared and paid to common shareholders
• Preferred dividends of $25,000 were paid
• The company sold $5,000 in long term investments
• The company issued $80,000 in long term bonds

REQUIRED Prepare a statement of cash flows for 2021. Use the following template for your response.

JBL Audio & Visual Inc. Statement of Cash Flows For the year ended December 31, 2021
Operating Activities:
Investing Activities:
Financing Activities:
Net increase/decrease in cash
Cash, beginning of year
Cash, end of year

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