Question

Chapter 21 Excel Homework Problem (2 af 2) Due Date: September 25, 2020 by 11:59 pm (upload to Learn) The comparative balance sheets for 2020 and 2021 are given below for Lynbroak, Inc. The Statement of Retained Earnings is also provided for the year ending December 31, 2021. Lynbrook, Inc. Comparative Balance Sheet December 31, 2021 and 2020 2020 800 1,500 3.100 Assets: Cash Accounts receivable Inventory Long-term investment Land Buildings Office equipment Delivery equipment Accumulated depreciation 2021 1,540 2,180 6,055 2.800 9.200 20,000 6.100 5.900 (8 500 45.225 6,000 20,000 4,000 3,000 (7,000) 31,400 Liabilities: Accounts payable Wages payable Bonds payable Premium on Bonds Payable 3,300 600 3,695 500 5 ano 240 Stockholders' Equity Common stock, $10 par Paid-in capital-ek of par Retained earnings Treasury stock 8.200 13,640 16,000 (2.0001 45.225 6,000 9,000 12,500 31.490 Beginning retained earnings Plus: Net income $ 12,500 8,000 20,500 $ Less: Stock dividends Cash dividends Ending retained earnings 840 3,660 (4,500) $ 16,000 (continued)

Answer 1

Statement of Cash Flows - Indirect Method
For Year Ending December 31, 2021
Cash Flow from Operating Activities
Net income	8,000
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation expenses	2,200
Loss on sale of office equipment	250
Premium on bonds payable	(60)
Increase in accounts receivable	(680)
Increase in inventory	(2,955)
Increase in accounts payable	395
Decrease in wages payable	(100)
Net cash flows from operations		7,050
Cash Flow from Investing Activities
Purchases of long-term investment	(2,800)
Purchases of land	(3,200)
Sale of office equipment	50
Net cash flows from investing activities		(5,950)
Cash Flow from Financing Activities
Proceeds from issue of bonds payable	5,300
Purchase of treasury stock	(2,000)
Payment of cash dividends	(3,660)
Net cash flows from financing activities		(360)
Net increase (decrease) in cash		740
Cash balance at the beginning of period		800
Cash balance at the end of period		1,540