Using the data given in E13-27B, prepare the statement of cash flows (indirect method)

for Seaway Travel Services, Inc., for 2023.

Data From E13-27B:-

The comparative balance sheet for Seaway Travel Services, Inc., for December 31, 2023 and 2022, is as follows:

The following information is taken from the records of Seaway Travel Services, Inc.:

a. Land was sold for \($13,000\).

b. Equipment was purchased for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. Net income for 2023 was \($40,000\).

f. Cash dividends paid during the year were \($5,000\).
Seaway Travel Services, Inc., uses the indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for 2023.

Transcribed Image Text:

122 2 3 4 5 6 Cash Current assets: 7 Accounts receivable 8 Inventory 9 Prepaid insurance 10 11 Total current assets 12 Land 13 Equipment Assets 14 Less: Accumulated depreciation Seaway Travel Services, Inc. Comparative Balance Sheets December 31, 2023 and 2022 B 2023 2022 S 45,000 $ 12,000 75,000 81,000 59,000 19,000 14,000 17,000 S 193,000 $ 129,000 S 101,000 $ 117,000 76,000 56,000 (19,000) (14,000) 351,000 $ 288,000 15 Total assets 16 17 Liabilities 18 Current liabilities: 19 Accounts payable S 25,000 $ 32,000 20 Wages payable 32,000 21,000 21 Interest payable 22 Income taxes payable 14,000 12,000 12,000 10,000 23 Total current liabilities S 83,000 S 75,000 24 25 Notes payable (long term) 98,000 88,000 26 Total liabilities 181,000 S 163,000 27 28 29 Common stock Stockholders' equity S 125,000 $ 115,000 30 Retained earnings 45,000 10,000 31 Total stockholders' equity S 170,000 S 125,000 32 33 Total liabilities and equity 34 S 351,000 $ 288,000