Prepare a statement of cash flows for the year

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Reference no: EM132825790

Problem - The comparative balance sheets of XYZ Inc. at the beginning and the end of the year 2021 are as follows.

XYZ INC. Balance Sheets

Assets

Dec. 31, 2021

Jan. 1, 2021

Inc./Dec.

Cash

$45,000

$13,000

$32,000 Inc.

Accounts receivable

91,000

88,000

3,000 Inc.

Equipment

39,000

22,000

17,000 Inc.

Less: Accumulated depreciation-equipment

17,000

11,000

6,000 Inc.

Total

$158,000

$112,000

 

Liabilities and Stockholders' Equity

 

 

 

Accounts payable

$20,000

$15,000

5,000 Inc.

Common stock

100,000

80,000

20,000 Inc.

Retained earnings

38,000

17,000

21,000 Inc.

Total

$158,000

$112,000

 

Net income of $44,000 was reported, and dividends of $23,000 were paid in 2021. New equipment was purchased and none was sold.

Required - Prepare a statement of cash flows for the year 2021.

Reference no: EM132825790

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