Question
Could you please help me!!!! It is really urgent!!!!! Pleaseee!!! The comparative balance sheet for The Company appears below: THE COMPANY Comparative Balance Sheet Dec.
Could you please help me!!!! It is really urgent!!!!! Pleaseee!!!
The comparative balance sheet for The Company appears below:
THE COMPANY
Comparative Balance Sheet
Dec. 31, 2023 Dec. 31, 2022
Assets
Cash................................................................................................ $40,000 $12,000
Accounts receivable....................................................................... 5,000 8,000
Inventory........................................................................................ 11,000 7,000
Prepaid expenses............................................................................ 2,000 3,000
Buildings......................................................................................... 20,000 20,000
Accumulated depreciationbuildings........................................... (3,000) (2,000)
Total assets............................................................................... $75,000 $48,000
Liabilities and Stockholders' Equity
Accounts payable........................................................................... $ 2,000 $ 4,000
Long-term note payable................................................................. 13,000 14,000
Common stock................................................................................ 33,000 18,000
Retained earnings........................................................................... 27,000 12,000
Total liabilities and stockholders' equity.................................. $75,000 $48,000
The income statement for the year is as follows:
BASSIE COMPANY
Income Statement
For the Year Ended December 31, 2023
Sales (all on credit)......................................................................... $280,000
Expenses and gains:
Cost of goods sold.................................................................... $199,000
Operating expenses, exclusive of depreciation....................... 42,300
Depreciation expense............................................................... 1,000
Interest expense....................................................................... 1,200
Gain on sale of land.................................................................. (2,500)
Income taxes............................................................................ 9,000
Total expenses and loss...................................................... 250,000
Net income..................................................................................... $ 30,000
Additional Information:
- Cash dividends of $15,000 were paid during the year.
- Land costing $15,000 was acquired by the issuance of common stock.
- The land above was subsequently sold for $17,500 cash.
Required:
Prepare a statement of cash flows for the year ended December 31, 2023 using the indirect method.
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