Problem
The partial comparative balance sheets of High Movie Company at March 31, 2021, reported the following:
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March 31
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2021
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2020
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Current assets:
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Cash and cash equivalents
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$7,000
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$16,000
|
|
Accounts receivable
|
14,800
|
22,200
|
|
Inventories
|
63,900
|
60,700
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|
Prepaid expenses
|
3,400
|
1,600
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|
Current liabilities:
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|
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Accounts payable
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57,700
|
55,300
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|
Accrued liabilities
|
14.600
|
16,700
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|
Income tax payable
|
14,400
|
10,800
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High's transactions and results for the year ended March 31, 2021 also included the following:
Acquisition of land by issuing note payable $101,000
Payment of cash dividend 31,000
Cash purchase of equipment 78,600
Issuance of long-term note payable to borrow cash 45,000
Sale of long-term investment for cash 13,300
Depreciation expense 15,000
Cash purchase of building 44,000
Net income 57,000
Issuance of common shares for cash 8,000
Share dividend 18,000
Task
Prepare High Movie Company's statement of cash flows for the year ended March 31, 2021, using the indirect method to report cash flows from operating activities.