Prepare the operating activities section of V Company.

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Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,100 loss on sale of land, $1,900 increase in inventory, $7,700 increase in income taxes payable, $2,300 net income, $67,200 patent amortization expense, $1,400 ordinary loss, $6,900 decrease in deferred taxes payable, $2,200 amortization of discount on bonds payable, $1,200 payment of cash dividends, $26,000 depletion expense, $4,800 decrease in salaries payable, $1,300 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,300 proceeds from issuance of stock, $63,000 ordinary gain, $3,700 depreciation expense, $16,000 amortization of discount on investment in bonds, $1,300 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

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Chapter 21, Problem 2P

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Prepare the operating activities section of V Company.

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Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,100 loss on sale of land, $1,900 increase in inventory, $7,700 increase in income taxes payable, $2,300 net income, $67,200 patent amortization expense, $1,400 ordinary loss, $6,900 decrease in deferred taxes payable, $2,200 amortization of discount on bonds payable, $1,200 payment of cash dividends, $26,000 depletion expense, $4,800 decrease in salaries payable, $1,300 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,300 proceeds from issuance of stock, $63,000 ordinary gain, $3,700 depreciation expense, $16,000 amortization of discount on investment in bonds, $1,300 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

Income Statement Information (2021): 1. Net income for the year ending December 31, 2021 is $43,500. 2. Depreciation expense is $6,000. 3. There is a loss of $3,000 resulted from the sale of long-term investment. Additional information (2021): 1. All sales and purchases of inventory are on account (or credit). 2. Received cash for the sale of long-term investments that had a cost of $27,000, yielding a $3,000 loss. 3. Cash dividends paid is $15,000. 4. The company purchased new machines and tools for $7,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021.