Wil Wheaton, Kirk Enterprises' Controller, Is Preparing the Financial Statements $\bullet$

question 50

Essay

Wil Wheaton, Kirk Enterprises' controller, is preparing the financial statements for 2021 as follows. He has gathered this additional information:
$\bullet$ On December 31, 2021, Kirk sold a piece of equipment with an original cost of $25,000 for $10,000 cash.The equipment had a book value of $13,000.
$\bullet$ On February 1, 2021, Kirk issued $60,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year.
$\bullet$ On February 2, 2021, Kirk took out a ten-year $110,000 long-term loan to provide the remaining funds needed to purchase the building.
$\bullet$ On May 15, 2021, Kirk paid $162,000 for the new building.
$\bullet$ The company paid a cash dividend of $9,500.
Required:
Using the indirect method, prepare Kirk Enterprises' statement of cash flows for 2021.

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Definitions:

Cultural Relativism

Assumption that all cultures are essentially equally valuable and should be judged according to their own standards; no cultural standpoint is privileged over another.

Marginalization

The process of pushing certain groups or individuals to the edge of society by not allowing them an active voice, identity, or rights.

Dominant Group

A social group that possesses the greatest power, resources, and social status within a society, exerting control and setting standards.

Marginalized Member

An individual or group that is pushed to the fringe of society and deprived of social and economic participation, often due to factors like race, gender, or economic status.