Zhang Systems Inc. began operations on January 1, 2022. Its post-closing trial balance at December 31, 2022

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Zhang Systems Inc. began operations on January 1, 2022. Its post-closing trial balance at December 31, 2022 and 2023 is shown below along with some other information.


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Other information regarding Zhang Systems Inc. and its activities during 2023:1. Assume all accounts have normal balances.2. Cash dividends were declared and paid during the year.3. Plant assets were sold for cash equal to book value during the year.



RequiredUsing the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2023.



Analysis Component:The net decrease in cash during 2023 for Zhang Systems Inc. was $75 million. Briefly explain what caused this change using the statement of cash flows prepared above.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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