CORONADO COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $58,300 $46,300 Accounts receivable 41,400 65,300 Inventory 149,800 146,600 Prepaid expenses 14,600 25,500 Land 142,600 130,500 Buildings 196,100 196,100 Accumulated depreciation-buildings (59.000) (32,100) Equipment 231,400 157,000 Accumulated depreciation-equipment (43,200) (36,700) Total $732,000 $698,500 Liabilities and Stockholders' Equity Accounts payable $46,200 $39.500 Bonds payable 260,000 260,000 Common stock. $1 par 189,300 157,200 Retained earnings 236,500 241,800 (59,000) (32,100) 231,400 157.000 (36,700) (43,200) $732,000 $698,500 Accumulated depreciation-buildings Equipment Accumulated depreciation--equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total $46,200 $39,500 260,000 260,000 189,300 157,200 236,500 241,800 $732,000 $698,500 Additional information: 1. 2 3 Operating expenses include depreciation expense of $42,000 ($26,900 of depreciation expense for buildings and $15, 100 for equipment). Land was sold for cash at book value. Cash dividends of $50,300 were declared and paid, Net income for 2022 was $45,000 Equipment was purchased for $95,600 cash. In addition equipment costing $21.200 with a book value of $12,600 was sold for $6.400 cash 4. Additional information: 1 2. 3 Operating expenses include depreciation expense of $42,000 ($26,900 of depreciation expense for buildings and $15,100 for equipment): Land was sold for cash at book value Cash dividends of $50,300 were declared and paid. Net income for 2022 was $45,000. Equipment was purchased for $95,600 cash. In addition, equipment costing $21.200 with a book value of $12,600 was sold for $6,400 cash 32,100 shares of $1 par value common stock were issued in exchange for land with a fair value of $32,100. 4. 5. 6. Prepare a statement of cash flows for the year ended December 31, 2022 using the Indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis es (15,000).) CORONADO COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 45000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 42000 Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Loss on Disposal of Plant Assets Decrease in Accounts Receivable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment UN Sale of Equipment Sale of Land Net Cash Used by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Net Increase in Cash ITTI Cash at Beginning of Period Cash at End of Period Cash at Beginning of Period $ Cash at End of Period Noncash Investing and Financing Activities VA Acquired Land by Issuance of Common Stock
