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Realtree Supplies Inc Realtree Supplies Had Profit of $ 83,500 in 2021

Question 143

Essay

Realtree Supplies Inc.'s current assets and liabilities at December 31, 2021 are as follows: 20212020 Accounts payable $8,400$11,500 Accounts receivable 18,50012,000 Cash 30,1005,000 Inter est payable 1,7501,250 Inventory 4,5008,500 Prepaid expenses 800900 Salaries payable 1,6003,000 Taxes payable 5501,550\begin{array} { l r r } & 2021 & 2020 \\ \text { Accounts payable } & \$ 8,400 & \$ 11,500 \\\text { Accounts receivable } & 18,500 & 12,000 \\\text { Cash } & 30,100 & 5,000 \\\text { Inter est payable } & 1,750 & 1,250 \\\text { Inventory } & 4,500 & 8,500 \\\text { Prepaid expenses } & 800 & 900 \\\text { Salaries payable } & 1,600 & 3,000 \\\text { Taxes payable } & 550 & 1,550\end{array} Realtree Supplies had profit of $ 83,500 in 2021. Included in the calculation of profit is depreciation of building and equipment in the amount of $ 45,000 and amortization of a patent in the amount of $ 1,000.
Instructions
Prepare the operating section of Realtree Supplies' cash flow statement for the year ended December 31, 2021, using the indirect method.

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