Answer:
Please see the Cash Flow Statement for Plasma Screens Corporation below:
Explanation:
<em>PLASMA SCREENS CORPORATION
</em>
<em>Statement of Cash Flows
</em>
<em>For the Year Ended December 31, 2021
</em>
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 68,000
<u><em>Adjustments to reconcile net income to</em></u>
<u><em>net cash provided by operating activities:</em></u><em> </em><u><em>
</em></u>
Depreciation on Fixed Assets 161,000
<u><em>(Increase) Decrease in Current Assets:</em></u>
Accounts Receivables 13,900
Inventory (14,900)
Prepaid Rent (1,900)
<u><em>Increase (Decrease) in Current Assets:</em></u>
Accounts Payable 13,900
Interest Payable (6,900)
Income Tax Payable <u> </u><u>2,900 </u>
NET CASH PROVIDED BY OPERATING ACTIVITIES <u>236,000</u><u> </u>
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment <u>(109,000)</u>
NET CASH USED IN INVESTING ACTIVITIES <u>(109,000)</u>
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Notes Payable (115,000)
Payment of Cash Dividends <u> (24,500)</u>
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES <u>(139,500)</u>
NET INCREASE (DECREASE) IN CASH (12,500)
Cash Balance, December 31 2020 154,300
Cash Balance, December 31 2021 141,800
