A recent graduate from ACCT 1510 has given you an opportunity to determine what the

changes were from 2022 to 2023 for UofU Inc. Provided is the statement of financial

position and Statement of Earning as of May 31, 2023, with a comparative of 2022

(Exhibit 1 and 2). and prepare a Statement of Cash Flows using the indirect method.

The company is a private enterprise and chooses to follow ASPE.

You will also need to evaluate the results from the Statement of Cash Flows, and

summarize the changes that occurred.

In addition, you will need to calculate the

following ratios:

Current Ratio

Debt to Equity Ratio

Accounts Receivable Turnover Ratio

Inventory Turnover Ratio

ROE

Additional Data:

1.

Cash Dividends of $10,000 were declared and paid.

2. Net Income for 2023 was $75,000.

3. Depreciation expense of $25,000

A.

Long-term investments had a value of $ 45,000 and were sold for cash for a gain

of $10,000. Additional long-term investments of $35,000 were purchased for cash.

5. Principal payment of $47,000 on long term debt

6. Shares sold for $50,000 cash.

7. Equipment with a cost of $25,000 and accumulated depreciation of $23,000 was

sold for $14,000 cash. New Equipment was purchased for $35,000 cash.

exhibt 1 and 2 are provide below

Exhibit 1 UofU inc. Statement of Financial Position May31,2023 2023 Assets Cash Accounts Receivable Inventory Prepaid Rent Long-Term Assets Equipment Accumluated Depreciation Investments Long Term Total Assets Current Liabilities Accounts Payable Wages Payable Interest Payable Income Tax Payable Long-term Liabilites Notes Payable Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $137,000102,00045,0005,000289,000 275,000 110,000 $165,000 45,000 $499,000 $65,00015,0008,5007,500$96,000 128,000 $224,000 100,000175,000$275,000 $499.000 2022 \$ 77,500 78,000 27,500 68,500 186,0003,000 28,000 2021 186,000 $37,5008,5005,5004,500$56,000 $231,000175,000 $391,000 Exhibit 2 UofU he. Statement of Earnings May 31, 2023 2023 2022 2021 Revenue Cost of Goods Sold Gross Margin Expenses: Other Expenses Net income $950,000600,000$350,000 $275,000 $75,000 $825,000575,000$250,000488,000 $205.400 \$ 44,600 S 43,000