LARKSPUR COMPANY Comparative Balance Sheet Assets Dec. 31, 2022 Dec. 31, 2021 Cash $34,000 $20,000 Accounts receivable 15,500 14,000 Inventory 38,000 18,400 Prepaid insurance 8,700 9,300 Stock investments -0- 17,700 Equipment 64,000 32,000 Accumulated depreciation equipment (19,500) (13,000) Total assets $140,700 $98,400 Liabilities and Stockholder's Equity Accounts payable $29,200 $7,100 Bonds payable 39,800 48,700 Common stock 44,300 22,900 Retained earnings 27,400 19,700 Total liabilities and stockholder's equity $140,700 $98,400 Additional information: 1. Net income for the year ending December 31, 2022, was $32,000. 2. Cash dividends of $25,200 were declared and paid during the year. 3. Stock investments on balance sheet that had a book value of $18,600 were sold for $11,900. 4. Sales for 2022 are $140,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that dec cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) LARKSPUR CORPORATION Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income /(Loss) $ Adjustments to reconcile net income to Net Cash Used by Operating Activities Depreciation Expense $ Loss on Sale of Stock Investments Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Insurance Decrease in Accounts Payable Net Cash Used by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Retirement of Bonds Payable Payment of Cash Dividends Net Cash Used by Financing Activities Net Cash Provided by Financing Activities Cash at Beginning of Period Cash at End of Period $