Answer Happy

Prepare statement of cash flows using the indirect method. The income statement for 2021 and the balance sheets for 2021 and 2020 are presented for Hall Industries, Inc. (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) (Click the icon to view additional information.) Requirement Prepare statement of cash flows for Hall Industries, Inc., for the year ended December 31, 2021, using the indirect method. Hall Industries, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 Operating Activities: Adjustments to reconcile net income to cash basis:
Net cash provided by used for) operating activities Investing Activities: Net cash provided by (used for) investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash HI Cash, beginning of the year Cash. end of the vear
Decrease in accounts payable Decrease in accounts receivable Decrease in interest payable Decrease in inventory Decrease in other accrued expenses payable Decrease in prepaid insurance Decrease in taxes payable Decrease in wages payable Increase in accounts payable Increase in accounts receivable Increase in interest payable Increase in inventory Increase in other accrued expenses payable Increase in prepaid insurance
Balance Sheets A B С 1 ets 2 Hall Industries, Inc. Comparative Balance Sheets December 31, 2021 and 2020 3 4 Assets 2021 2020 5 Current assets: 6 Cash $ 478,000 $ 290,000 7 Accounts receivable 73,000 122,000 8 Inventory 331,000 211,000 9 Prepaid insurance 8,000 6,500 10 Total current assets $ 890,000 $ 629,500 11 $ 585,000 $ 555,000 12 Property, plant, and equipment 13 Less: Accumulated depreciation (150,000) 93,000 (115,000) 77,000 14 Investments 15 Total assets $ 1,418,000 $ 1,146,500 16
17 Liabilities 18 Current liabilities: 19 Accounts payable (inventory purchases) $ 55,000 $ 36,000 20 Wages payable 16,000 17,500 21 Interest payable 1,600 900 22 Income taxes payable 65,070 11,500 23 Other accrued expenses payable 6,600 3,100 24 Total current liablities $ 144,270 $ 69,000 25 26 Long-term liabilities 63,000 24,000 27 Total liabilities $ 207,270 $ 93,000 28 29 Stockholders' equity 30 Common stock $ 604,000 $ 604,000 31 Retained earnings 606,730 449,500 32 Total stockholders' equity $ 1,210,730 $ 1,053,500 33
34 Total liabilities and equity $ 1,418,000 $ 1,146,500
- Income Statement A B с 1 Hall Industries, Inc. 2 Income Statement 3 For the Year Ended December 31, 2021 4 Sales revenues $ 960,000 387,000 $ 573,000 5 Less: Cost of goods sold 6 Gross profit 7 Less operating expenses: 8 Salaries and wages expense $ 184,000 9 Insurance expense 10,000 44,200 85,000 10 Depreciation expense 11 Other operating expenses 12 Total operating expenses 13 Operating income 14 Plus other income and less other expenses: 323,200 $ 249,800 15 Interest expense $ 5,400 16 Gain on sale of PP&E 2,500
11 Other operating expenses 85,000 323,200 12 Total operating expenses 13 Operating income $ 249,800 14 Plus other income and less other expenses: 15 $ 5,400 Interest expense Gain on sale of PP&E 16 2,500 17 Total other income and expenses 2,900 18 Income before income taxes $ 246,900 19 Less: Income tax expense 74,070 20 Net income $ 172,830
Additional information Additional information follows: a. Sold plant asset for $4,000. The original cost of this plant asset was $10,700 and it had $9,200 of accumulated depreciation associated with it. b. Paid $4,000 on the bonds payable; issued $43,000 of new bonds payable. c. Declared and paid cash dividends of $15,600. d. Purchased new investment for $16,000. Paid cash. e. Purchased new equipment for $40,700. Paid cash.