Question

The following information is taken from Lisa Corporation's financial statements:

		December 31
		2021			2020
Cash		$ 75,600			$ 32,400
Accounts receivable		122,400			96,000
Allowance for doubtful accounts		(5,400)			(3,720)
Inventory		192,000			210,000
Prepaid expenses		9,000			8,160
Land		120,000			72,000
Buildings		352,800			292,800
Accumulated depreciation		(38,400)			(15,600)
Patents		24,000			42,000
		$852,000			$734,040
Accounts payable		$ 108,000			$ 100,800
Accrued liabilities		64,800			75,600
Bonds payable		150,000			72,000
Common stock		120,000			120,000
Retained earnings―appropriated		96,000			12,000
Retained earnings―unappropriated		331,200			363,240
Treasury stock, at cost		(18,000)			(9,600)
		$852,000			$734,040

		For 2021 Year
Net income		$93,960
Depreciation expense		22,800
Amortization of patents		6,000
Cash dividends declared and paid		42,000
Gain or loss on sale of patents		none

Prepare a statement of cash flows for Lisa Corporation for the year 2021. (Use the indirect method.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Lisa Corporation Statement of Cash Flows                                                           December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 Increase (Decrease) in Cash
		$
	$
		$

Answer 1

LISA CORPORATION Statement of Cash Flow For The Year Ended 2021
Cash flow from operating activities:
Net income	$93,960
Adjustments:
Depreciation expense	22,800
Amortization of patents	6,000
Increase in accounts receivable, net	(24,720)
Decrease in inventory	18,000
Increase in prepaid expenses	(840)
Increase in accounts payable	7,200
Decrease in accrued liabilities	(10,800)
Net cash flow from operating activities		$111,600
Cash flow from investing activities\
Purchase of land	(48,000)
Purchase of building	(60,000)
Sale of patents (42,000-6,000-24,000)	12,000
Net cash flow from investing activities		(96,000)
Cash flow from financing activities:
Issue of bonds payable	78,000
Purchase of Treasury stock	(8,400)
Cash dividend paid	(42,000)
Net cash flow from financing activities		27,600
Net increase (decrease) in cash		43,200
Beginning cash balance		32,400
Ending cash balance		$75,600