Question
Galaxy Bedding Company manufactures luxury bedding goods. Given below is the financial information for the past two years: Balance Sheet Assets 2021 2022 Cash $145,000
Galaxy Bedding Company manufactures luxury bedding goods. Given below is the financial information for the past two years:
Balance Sheet
Assets | 2021 | 2022 |
Cash | $145,000 | $150,000 |
Marketable Securities | 235,000 | 260,000 |
Accounts Receivable | 560,000 | 820,000 |
Inventories | 420,000 | 675,000 |
Investments in marketable securities | 170,000 | 255,000 |
Total current assets | $1,530,000 | $2,160,000 |
Plant and Equipment | 1,800,000 | 2,500,000 |
Less Accumulated Amortization | 540,000 | 750,000 |
Net plant and Equipment | $1,260,000 | $1,750,000 |
Total Assets | $2,790,000 | $3,910,000 |
LIABILITIES AND SHAREHOLDERS EQUITY | ||
Accounts payable | $430,000 | $385,000 |
Notes payable | 350,000 | 410,000 |
Accrued Expenses | 230,000 | 245,000 |
Income Taxes Payable | 255,000 | 410,000 |
Bonds Payable (2025) | 200,000 | 500,000 |
Common Stock (100,000 shares) | 1,000,000 | 1,000,000 |
Retained Earnings | 325,000 | 960,000 |
Total Liabilities and Shareholders Equity | $2,790,000 | $3,910,000 |
Galaxy had a Net Income after taxes of $1,554,000 in 2022.
Required:
Calculate the amount of Cash flow from Operating Activities for the year ending December 31, 2022.
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