22.4

balance sheet accounts at the beginning and end of the year are shown below. Your working papers from the audit contain the following information: 1. On April 1,2025, the existing deficit was written off against paid-in capital created by reducing the stated value of the no-par stock. 2. On November 1,2025,31,080 shares of no-par stock were sold for $269,850. The board of directors voted to regard $5 per share as stated capital. 3. A patent was purchased for $15,750. 4. During the year, machinery that had a cost basis of $17,220 and on which there was accumulated depreciation of $5,460 was sold for $9,450. No other plant assets were sold during the year. 5. The 12%,20-year bonds were dated and issued on January 2.2013 , interest was payable on June 30 and December 31 . They were sold originally at 106 . These bonds were redeemed at 100.9 plus accrued interest on March 31, 2025. 6. The 8%,40year bonds were dated January 1. 2025, and were sold on March 31 at 97 plus accrued interest. interest is payable semiannually on June 30 and December 31 . Expense of issuance was $881. 7. Sweet Corporation acquired 70% control in Crimson Company on January 2,2025 , for $105,000. The income statement of Crimson Company for 2025 shows a net income of $15,750. 8. Major repairs to bulldings of $7,560 were charged to Accumulated Depreciation-Buildings 9. Interest paid in 2025 was $11.025 and income taxes paid were $35,700. From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to 0 decimal places, e.8. 2.500. Show amounts that decrease cashi flow with either a - sign es. 15,000 or in parenthesis es. (15,000)) Accounts payable Dividends payable Bonds payable 8% Bonds payable 12% Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation-machinery Premium on bonds payable Commonstock-no par Paid-in capital in excess of par-common stock Retained earnings-unappropriated 314,244 73,500 131,250 0 37,065 445,200 181.650 0 1.235,010 114,450 $2,648,13121,000 294,000 0 0 105,000 42,000 420,000 136,500 2.520 1.525,860 0 (472.500) $2,136,960 20.244 73,500 131,250 (105,000) (4.935) 25,200 45,150 (2,520) (290,850) 114,450 493.500