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Question 7 CASH FLOW - DIRECT METHOD Picklemania had the following T-accounts in 2021 Open bal AR $ 25,555 Sales on credit $ 955,555 Collections -$ 845,555 Close bal AR $ 135,555 Open bal Income Tax Payable $ 48,555 CR $ 65,555 DR -$ 74,555 Close bal Income Tax Payable $ 39,555 es is Open bal AP Purchases on credit Payments to suppliers Close bal AP Open bal Inventory DR CR Close bal Inventory $ -$ $ $ $ -$ $ 15,555 155,555 99,555 71,555 65,555 155,555 34,555 186,555 Open bal Prepaid expense DR CR Close bal Prepaid Expense Open bal Accrued Liabilities CR DR Close bal Accrued Liabilities $ -$ $ $ -$ $ 25,555 21,555 23,555 23,555 5 15,555 15,555 5 Open bal Interest Payable CR DR Close bal Interest Payable Open bal Interest Payable CR DR Close bal Interest Payable $ $ -$ $ $ $ -$ $ 500 15,555 15,555 500 15,555 15,555 interest expe 19,555 paid 11,555 Picklemania had the following info in 2021 Sales revenue $ COGS $ Operating expenses (Selling and $ Interest Expense $ Income Tax Expense $ es es es es es 955,555 546,555 125,555 15,555 65,555 Picklemania had a net income of 1,050,000$ in 2021. It sold land for 200,500$ that had a book value of 20,050$. It purchased equipment worth 50,500$ by issuing a note payable of 20,800$ and by paying the balance cash. It declared dividends of 5,400$, of which 2,300$ were paid in 2021 and the balance will be paid in 2022. The company made a payment of 355,000$ on long-term debt 2021. The beginning cash balance is 150,000$ in 2021. Create the statement of Cash Flows for the year ended on Dec 31st, 2021. A) Create the Statement of cash flow for Picklemania for the year ending Dec 31st, 2021

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