The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $58 million. SURMISE COMPANY Comparative Balance

Best Writers accounting, business-managerial-accounting The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $58 million. SURMISE COMPANY Comparative Balance

accounting, business-managerial-accounting

The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $58 million. SURMISE COMPANY Comparative Balance

The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $58 million. SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 90 $ 98 Accounts receivable 78 84 Less: Allowance for uncollectible accounts (15 ) (6 ) Prepaid expenses 10 5 Inventory 121 110 Long-term investment 63 35 Land 76 76 Buildings and equipment 311 215 Less: Accumulated depreciation (103 ) (86 ) Patent 13 15 $ 644 $ 546 Liabilities Accounts payable $ 7 $ 19 Accrued liabilities 2 8 Notes payable 26 0 Lease liability 89 0 Bonds payable 53 99 Shareholders’ Equity Common stock 58 50 Paid-in capital—excess of par 247 205 Retained earnings 162 165 $ 644 $ 546 Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be ful.  ( Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $7 million are paid at January 1 of each year starting in 2021.)

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