Reference no: EM132945688
Question - Troll Corp had the following financial data related to the years ended December 31:
December 31 2021 2020
Cash $42,740 $56,980
Accounts receivable 23,500 21,500
Merchandise inventory 45,000 122,000
Long-term investments 202,000 120,000
Equipment 320,000 201,000
Accumulated depreciation, equipment 64,000 35,000
$569,240 $486,480
Accounts payable $16,200 $13,200
Income taxes payable 23,000 22,300
Bonds payable 44,500 64,000
Common shares 152,000 133,000
Retained earnings 333,540 253,980
$569,240 $486,480
Sales (all on credit) $479,892
Cost of goods sold $161,644
Depreciation expense 44,000
Other operating expenses 56,431
Interest expense 10,185
Loss on sale of equipment 3,822 276,082
Profit $203,810
(1) There was no gain or loss on the long-term investments sold or the bonds retired.
(2) Old equipment with an original cost of $40,000 with accumulated depreciation of $15,000 was sold for $21,178.
(3) New equipment was purchased for $159,000.
(4) Dividends of $124,250 were paid during the year.
(5) Additional shares were issued during the year.
Required - Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method.