The income statement and additional data of Newman Travel Products, Inc., follow: (Click the icon to view the income sta

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The Income Statement And Additional Data Of Newman Travel Products Inc Follow Click The Icon To View The Income Sta 1 (67.06 KiB) Viewed 3 times

The income statement and additional data of Newman Travel Products, Inc., follow: (Click the icon to view the income statement.) i (Click the icon to view the additional data.) Requirements 1. Prepare Newman's statement of cash flows for the year ended December 31, 2021, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Requirement 1. Prepare Newman's statement of cash flows for the year ended December 31, 2021, using the indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Newman Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Acquisition of plant assets Decrease in accounts receivable Depreciation Increase in accounts payable Decrease in accrued liabilities Decrease in inventory Increase in prepaid expenses Net income Payment of dividends Payment of long-term note payable Proceeds from issuance of common stock Proceeds from sale of land More info Additional data: a. Acquisition of plant assets was $158,000. Of this amount, $102,000 was paid in cash and $56,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $27,000. c. Proceeds from the issuance of common stock totaled $80,000. d. Payment of a long-term note payable was $15,000. e. Payment of dividends was $18,000. f. From the balance sheets: Current assets: Cash Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Print S S December 31, 2021 75,000 42,000 50,000 9,100 38,000 14,000 Done 2020 $ 38,900 57,000 91,000 8,700 $ 26,000 85,000 - X Data table Newman Travel Products, Inc. Income Statement Year Ended December 31, 2021 Revenues: Service revenue Dividend revenue Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense Net income Print $ 235,000 8,100 103,000 57,000 26,000 2,000 $ 243,100 2,600 11,000 201,600 S 41.500 Done X