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The balance sheet for December 31, 2021, December 31, 2020, and the income statement for the year ended December 31, 2021, for Bucket Company follows Bucket Company Balance Sheet December 31, 2021 and 2020 2021 2020 Assets $ 48,000 Cash Accounts receivable, net Inventory Land Building and equipment Accumulated depreciation Total assets 60,000 80,000 50,000 100,000 (74.000) $264,000 $ 20,000 70,000 100,000 50,000 115,000 (70.000) $285.000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Wages payable $ 25,000 4,000 $ 28,000 3,000 10,000 60 00 10,000 50.000 Long-term notos payable 60,000 100,000 Long-term notes payable 50,000 Common stock 110,000 Retained earnings 65,000 Total liabilities and stockholders' equity $264,000 84,000 $285,000 Bucket Company Income Statement For the Year Ended December 31, 2021 Sales $500,000 $330,000 90,000 Less expenses: Cost of goods sold Selling and administrative expenses (includes depreciation of $15,000) Other non-operating income (expense) Interest expense Gain on sale of equipment Total expenses Income before taxes (5,000) 4,000 419,000 Income tax expense $ 81,000 32.000 $ 49,000 Net income Additional information: 1. The only change to retained earnings was from income and dividends. 2 Equipment with a cost of $30,000 and a book value of $19,000 was sold for $23,000, New equipment was purchased for $15,000 WOESTIONS If you were to prepare a formal Statement of Cash Flows, the sum of the net cash inflows (outflows) for 2021 from operating, investing and financing activities combined would have to be: a net cash inflow of $49.000 a net cash outflow of $28,000 a net cash inflow of $28,000 O a net cash outflow of $60,000 QUESTION 35 Refer to the income statement of Bucket Company. What is the earnings before interest and tax (EBIT)? $81,000 $424,000 O $49,000 $86,000 QUESTION 36 The change in long-term notes payable on the balance sheet would be reflected in the 2021 Statement of Cash Flows as a(n) Increase in cash from financing activities decrease in cash from financing activities increase in cash from investing activities O decrease in cash from investing activities

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