The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $ 141,800 $ 154,300
Accounts receivable 77,600 91,500
Inventory 94,000 79,100
Prepaid rent 3,800 1,900
Long-term assets:
Land 475,000 475,000
Equipment 774,000 665,000
Accumulated depreciation (427,000 ) (266,000 )
Total assets $ 1,139,200 $ 1,200,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 98,000 $ 84,100
Interest payable 6,900 13,800
Income tax payable 7,800 4,900
Long-term liabilities:
Notes payable 115,000 230,000
Stockholders' equity:
Common stock 695,000 695,000
Retained earnings 216,500 173,000
Total liabilities and stockholders' equity $ 1,139,200 $ 1,200,800
Additional Information for 2021:
Net income is $68,000.
The company purchases $109,000 in equipment.
Depreciation expense is $161,000.
The company repays $115,000 in notes payable.
The company declares and pays a cash dividend of $24,500.
Required:
Prepare the statement of cash flows using the indirect method.