Rocket Company
Statement of Financial Position December 31, 2021 and 2020
2021
2020
Assets
Cash
Accounts receivable, net
Inventory
Land
Building and equipment
Accumulated depreciation
Total assets
$25,000
$60,000
$80,000
$50,000
$130,000
$85,000
$330,000
$20,000
$70,000
$100,000
$50,000
$115,000
$70,000
$285,000
Liabilities and Stockholders' Equity
Accounts payable
Income taxes payable
Wages payable
Bonds payable
Common stock ($1 per share)
Retained earnings
Total liabilities and stockholders' equity
$30,000
$4,000
$5,000
$50,000*
$110,000
$61,000
$260,000
$35,000
$3,000
$3,000
$60,000
$100,000
$84,000
$285,000
*During 2021, cash paid for retirement of notes payable was $10,000.
Rocket Company Income Statement
For the Year Ended December 31, 2021
2021
Sales
Less expenses:
Cost of goods sold
Selling and administrative expenses (includes depreciation of $15,000)
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
$500,000
$330,000
$90,000
$5,000
$425,000
$75,000
$30,000
$45,000
Dividends paid for 2021 were $68,000.
Required: Prepare the statement of cash flows for 2021. (Present cash flows from operations using the indirect approach.)
