Question
Instructions a. Prepare a statement of cash flows for the year 2023 for Spark. [Pro tip: identify items 1 through 6 as O, I or
Instructions a. Prepare a statement of cash flows for the year 2023 for Spark. [Pro tip: identify items 1 through 6 as O, I or F as the first step toward preparing the statement of cash flows.] b. Prepare the unclassified balance sheet as it would appear at December 31, 2023. This will be a simplified balance sheet based upon the somewhat limited information available. [Pro tip: use of Taccounts may be very useful for updating the original 12/31/22 balances for the data identified in items 1 through 6, then consider the new ending balances provided in item 7.] c. Compute Sparks free cash flow for 2023. [Hint: Free Cash Flow formula = Cash provided by Operating Activities less capital expenditures less cash dividends paid]
Spark Inc. had the following balance sheet at December 31, 2022. During 2023, the following occurred: 1. Spark liquidated its available-for-sale debt investment portfolio at a loss of $5,000. 2. A tract of land was purchased for $38,000. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $10,000 were declared and paid to stockholders. 5. Net income for 20234 was $35,000, including $12,000 in depreciation expense. 6. Land was purchased through the issuance of $30,000 in additional bonds. 7. At December 31,2023 , Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000Step by Step Solution
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