Final answer:
The statement of cash flows for Smolira Golf Corp for 2021 involves summarizing cash transactions, divided into operating, investing, and financing activities. Data from the income statement and balance sheet are essential for calculating changes in cash positions. The statement reconciles beginning and ending cash balances, reflecting the company's financial health.
Step-by-step explanation:
Preparing a statement of cash flows for Smolira Golf Corp for the year 2021 involves summarizing the company's cash inflows and outflows over the period. The statement is divided into three parts: operating activities, investing activities, and financing activities.
Firstly, the cash flows from operating activities are calculated by adjusting the net income with changes in working capital and non-cash expenses. An example would be to add back depreciation since it's a non-cash expense. Following that, we analyze investing activities, which typically include purchases or sales of long-term assets like property, equipment, or investments. Lastly, financing activities involve transactions related to equity and debt, such as issuing shares, paying dividends, or borrowing funds.
To complete the statement for 2021, we would need the relevant financial data from Smolira Golf Corp, including the income statement and balance sheet for the year. This data is then used to reconcile the beginning and ending cash balances through the adjustments mentioned above, providing a clear picture of the company's cash position at year-end.