Acct 1B Chapter 16 Exercise

YOU MUST SUBMIT ONE FILE IN CANVAS WITH A FILE EXTENSION OF DOC, XLS, OR PDF. YOU CANT SUBMIT A LINK TO A GOOGLE DOC, SHEET, ETC. IF YOU DID YOUR WORK IN A GOOGLE DOC/SHEET, SAVE IT TO A WORD DOC, EXCEL SHEET, OR PDF AND UPLOAD IT INTO CANVAS.

The comparative balance sheet of Cook Corporation for December 31, 2022, and 2021, is as follows:

Assets	2022	2021
Cash	$41,000	$31,000
Accounts receivable (net)	67,000	60,000
Prepaid insurance	25,000	17,000
Land	18,000	40,000
Equipment	70000	60000
Accumulated depreciation	(20,000)	(13,000)
Total Assets	$201,000	$195,000
Liabilities and Stockholders' Equity
Accounts payable	3000	6000
Bonds payable	27000	19000
Common stock	140000	115000
Retained earnings	31000	55000
Total liabilities and stockholders' equity	201000	195000

An examination of the accounting records revealed the following additional information applicable to 2022:

Net loss for 2022 is $10,000. Cash dividends were declared and paid in 2022. No dividends were in arrears at 12/31/21. Land was sold for cash at a loss of $4,000. Land was purchased for $9,000 in cash. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. $22,000 of bonds were retired with cash during the year at carrying (book) value. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was $25,000.

Required:

Prepare Cook Corporations 2022 cash flow statement using the indirect method. You MUST show the T-Accounts AND/OR supporting calculations for ALL numbers or you will receive 50% of the points possible.