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Coronado Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have
Coronado Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Coronado Industries for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation BALANCE SHEETS 12/31/22 $408000 358000 386000 $609000 (319000) 290000 $1442000 12/31/21 $ 190000 216000 482000 $962000 (304000) 658000 $1546000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 175000 354000 361000 222500 329500 $1442000 $ 98000 392000 601000 216000 239000 $1546000 $8390000 7150000 1240000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales Gross profit Selling expenses $601000 Administrative expenses 191000 Income from operations Interest expense Income before taxes Income taxes Net income 792000 448000 74000 374000 93500 $ 280500 The following additional data were provided: 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $239000. This equipment cost $352000 originally and had a book value of $290000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is O $131500. O $93500 O $58000. O $38000
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