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Liabilities and Stockholders' Equity Accounts payable $19,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 17.000 33,000 Common stock 18.000 14,000 Retained earnings 50.000 38.000
Liabilities and Stockholders' Equity Accounts payable $19,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 17.000 33,000 Common stock 18.000 14,000 Retained earnings 50.000 38.000 Total $111.000 $108,000 Warner Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6.000 24.000 Income from operations 43.000 Interest expense 3.000 Income before income taxes 40.000 Income tax expense 8.000 Net income $32,000 Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 Presented here are the financial statements of Warner Company. Warner Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $35,000 $20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20.000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24.000) Total $111.000 $108,000 Liabilities and Stockholders' Equity Accounts payable $19,000 $15,000 Income taxes payable 7.000 8,000 Bonds payable 17,000 33.000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Total $111,000 $108,000 Warner Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Liabilities and Stockholders' Equity Accounts payable $19,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 17.000 33,000 Common stock 18.000 14,000 Retained earnings 50.000 38.000 Total $111.000 $108,000 Warner Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6.000 24.000 Income from operations 43.000 Interest expense 3.000 Income before income taxes 40.000 Income tax expense 8.000 Net income $32,000 Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000
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