Chapter 13 Practice Problem #1 Sales Cost of Goods Sold Gross Profit Operating Expenses: Depreciation Expense Other Expenses Total Operating Expenses Income from operations Other Gains (Losses): Gain on sale of equipment Loss on sale of investments Income before taxes Income Taxes Expense Net Income Assets Cash Accounts Receivable Merchandise Inventory. SOUTHWEST, INC. Income Statement For Year Ended June 30, 2022 Prepaid Insurance Office Supplies SOUTHWEST, INC. Comparative Balance Sheets June 30, 2021 and 2022 Investments Equipment Accum. Depreciation, Equipment Total Assets 88,753 101,879 Liabilities & Equity Accounts Payable Wages Payable Income Tax Payable Notes Payable (long-term) Common Stock, $5 par value Retained Earnings Total Liabilities & Equity June 30, 2022 182,745 65,720 62,620 25,900 2,200 118,387 (26,350) 431,222 24,490 6,510 2,170 31,953 208,000 158,099 431,222 Additional Information: 1) The company used cash to pay off a $45,000 long-term note payable. 2) The company purchased equipment for $85,000 cash. 3) The company sold equipment and received $28,019 cash. 4) The company sold the investments and received $90,000 cash. 5) Issued 10,000 shares of common stock for $5 cash per share. 6) Paid a cash dividend of $117,683. 976,600 625,024 351,576 190,632 160,944 3,125 (5,600) 158,469 56,604 101,865 June 30, 2021 49,494 56,952 106,107 35,000 1,985 95,600 131,532 (10,848) 465,822 35,256 17,628 4,068 76,953 158,000 173,917 465,822 Instructions: Use all of the above information to prepare a Statement of Cash Flows for the Year Ended June 30, 2022.

Chapter 13 Practice Problem \#1 Additional Information: 1) The company used cash to pay off a $45,000 long-term note payable. 2) The company purchased equipment for $85,000 cash. 3) The company sold equipment and received $28,019 cash. 4) The company sold the investments and received $90,000 cash. 5) Issued 10,000 shares of common stock for \$5 cash per share. 6) Paid a cash dividend of $117,683