Reference no: EM132772052

Realtree Supplies Inc.'s current assets and liabilities at December 31, 2021 are as follows:

?                                           2021                      2020

Accounts payable         $8,400                   $11,500

Accounts receivable        18,500                 12,000

Cash                             30,100                   5,000

Interest payable                 1,750                 1,250

Inventory                           4,500                  8,500

Prepaid expenses                      800                    900

Salaries payable                     1,600               3,000

Taxes payable                      550                      1,550

Realtree Supplies had profit of $83,500 in 2021. Included in the calculation of profit is depreciation of building and equipment in the amount of $45,000 and amortization of a patent in the amount of $1,000.

Instructions

Problem 1: Prepare the operating section of Realtree Supplies' cash flow statement for the year ended December 31, 2021, using the indirect method.