Balance Sheet Complete Your Work Here!

Assets $20222021$ Cash flow Statement

Current Assets: Corporation

Cash $$75,000$ $$97,000$

Accounts Receivable, Net $$150,000$ $$100,000$ Cash from Operting activities

Merchandise Inventory $$130,000$ $$60,000$ Net Income $$256,550$

Prepaid Rent $$30,000$ $$10,000$ Adjustment to reconcile Net Income to net CF from OA Extra Information:

Total Current Assets $$385,000$ $$267,000$ Depreciation $$30,000$ Purchase equipment for $$242,000,$ $$122,000$ paid in cash, the rest long$-$term note

Gain on sale of equip $($$$4,500)$

Property, Plant, and Equipment: Change in current opt and liab Sold equipment with BV is $$15,000,$ sold for $$17,100$

Equipment $$435,000$ $$208,000$ Change in AR $($$$50,000)$

Less: Accumulated Depreciation $-$ Equipment $($$$80,000)($$$52,400)$ Change in Inventories $($$$70,000)$ Cash paid for equipment $$122,000$

Total Property, Plant, and Equipment $$355,000$ $$155,600$ Change in Prepaid Rent $($$$20,000)$

Total Assets $$740,000$ $$422,600$ Change in AP $($$$26,150)$ Cash

Change in unearned revenue $($$$8,000)$

Liabilities and Stockholders$$ Equity Change in salaries payable $$17,000$

Current Liabilities: net cash flow from operating activites $$124,900$

Accounts Payable $$84,000$ $$110,150$

Dividends Payable $$0$ $$0$ Cash flow from investing activities

Unearned Revenue $$42,000$ $$50,000$ Cash payments on equiptments

Salaries Payable $$50,000$ $$33,000$ Cash received from sale of equipment

Federal Income Taxes Payable $$10,000$ $$10,000$ Net cash from investing activities

Total Current Liabilities $$186,000$ $$203,150$

Net cash flow from financing activities

Long Term Liabilities Cash received from issuing common stock

Note Payable $$120,0000$ Less: Cash paid for dividends

Total Long$-$Term Liabilities $$120,0000$ Net cash flow from financing activities

Total Liabilities $$306,000$ $$203,150$ Total change in cash

Cash at beginning balance $$97,000$

Stockholders$$ Equity: Cash at ending balance $$75,000$

Common Stock, $$1$ Par $$163,000$ $$54,300$

Paid$-$In Capital in Excess of Par $$18,000$ $$18,000$

Retained Earnings $$253,000$ $$147,150$

Total Stockholders$$ Equity $$434,000$ $$219,450$

Total Liabilities and Stockholders$$ Equity $$740,000$ $$422,600$

Comparative Statement of Income

For the Years Ended December $31,2022$ and $2021$

$20222021$

Sales $$1,200,000$ $$850,000$

Cost of Goods Sold $$650,000$ $$500,000$

Gross Margin $$550,000$ $$350,000$

Operating Expenses:

Salaries and Wages Expense $$125,000$ $$100,000$

Rent Expense $$25,000$ $$25,000$

Depreciation Expense $$30,000$ $$18,000$

Total Operating Expenses $$180,000$ $$143,000$

Income from Operations $$370,000$ $$207,000$

Gain on Sale of Equipment $$4,500$ $$0$

Interest Expense $$8,000$ $$6,500$

Increase $($Decrease$)$ in Operating Income $($$$3,500)($$$6,500)$

Income before Taxes $$366,500$ $$200,500$

Federal Income Taxes $30\%$ $$109,950$ $$60,150$

Net Income $$256,550$ $$140,350$