LAG Network Inc.$$s balance sheet and income statement are as follows:

LAG Network Inc.

Income Statement

For Year Ended December $31,2023$

Sales $ $919,600$

Cost of goods sold $547,200$

Gross profit $ $372,400$

Operating expenses:

Depreciation expense $ $25,200$

Other expenses $213,800$

Total operating expenses $239,000$

Profit from operations $ $133,400$

Income taxes $13,600$

Profit $ $119,800$

LAG Network Inc.

Comparative Balance Sheet Information

December $31$

$20232022$

Assets

Cash $ $81,100$ $ $52,600$

Accounts receivable $39,40036,600$

Merchandise inventory $289,300234,400$

Equipment $145,400136,600$

Accumulated depreciation $(62,800)(37,600)$

Total assets $ $492,400$ $ $422,600$

Liabilities and Equity

Accounts payable $ $22,200$ $ $34,800$

Income taxes payable $2,6001,200$

Common shares $354,000351,000$

Retained earnings $113,60035,600$

Total liabilities and equity $ $492,400$ $ $422,600$

Additional information regarding LAG Network Inc.$$s activities during $2023$:

Equipment is purchased for $$8,800$ cash.

$1,200$ common shares are issued for cash at $$2\mathrm{.}50$ per share.

Declared and paid $$41,800$ of cash dividends during the year.

 

 

Required:

Prepare a statement of cash flows for $2023$ that reports the cash inflows and outflows from operating activities according to the indirect method. $($List any deduction in cash and cash outflows as negative amounts.$)$

Answer rating: 100% (QA)

LAG Network Incs Financial Statements For the Year Ended 31stDecember 2023 Statement ... View the full answer