ACC $202$

Chapter $12$ Final Exam

Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below.

GeDook Company$$s most recent balance sheet, income statement, and other important information for $2022$ are presented below.

Balance Sheets

$20222021$

Cash $590,000720,000$

Accounts receivable $710,000540,000$

Inventory $600,000360,000$

Prepaid expenses $50,00072,000$

Property, plant, and equipment $1,000,000920,000$

Accumulated depreciation $(620,000)(520,000)$

Long$-$term investments $280,000350,000$

Total assets $2,610,0002,442,000$

Accounts payable $120,000178,000$

Accrued liabilities $34,00060,000$

Interest payable $46,00034,000$

Income tax payable $32,00022,000$

Bonds payable $216,00030,000$

Common stock $1,360,0001,338,000$

Retained earnings $802,000780,000$

Total liabilities & equity $2,610,0002,442,000$

$3$

Income Statement

For the Year Ended Dec. $31,2022$

Sales $1,960,000$

Cost of goods sold $1,204,000$

Gross margin $756,000$

Operating expenses $270,000$

Depreciation expense $260,000$

Operating income $226,000$

Interest expense $(26,000)$

Gain on sale of equipment $40,000$

Loss on sales of long$-$term investments $(6,000)$

Income before taxes $234,000$

Income tax expense $160,000$

Net income $74,000$

Additional data for $2022$:

$1.$ Sold equipment with a book value of $$38,000($$$198,000$ cost $$ $$160,000$ accumulated depreciation$)$ for $$78,000$ cash.

$2.$ Purchased equipment for $$278,000$ cash.

$3.$ Sold long$-$term investments for $$74,000$ cash. These investments had an original cost of $$80,000.$

$4.$ Purchased long$-$term investments for $$10,000$ cash.

$5.$ Issued bonds for $$186,000$ cash.

$6.$ Issued common stock for $$22,000$ cash.

$7.$ Declared and paid $$52,000$ in cash dividends.

Required:

Prepare a statement of cash flows for the year ended December $31,2022,$ using the indirect method.

Your answers to this problem should be placed in the space below this line.

GeDook Company

Statement of Cash Flows

For the Year Ended December $31,2022$

Net income

Add back depreciation expense

Add back loss on sale of long$-$term investments

Deduct gain on sale of equipment

Increase in accounts receivable

Increase in inventory

Decrease in perepaid expenses

Decrease in accounts payable

Decrease in accrued liabilities

Increase in interest payable

Increase in income tax payable

Cash provided by operating activities

Proceeds from sale of equipment

Purchase of equipment

Proceeds from sale of long$-$term investments

Purchase of long$-$term investments

Cash used by investing activities

Proceeds from issuance of bonds

Proceeds from issuance of common stock

Payment of cash dividends

Cash provided by financing activities

Net increase in cash

Beginning cash balance

Ending cash balance