ORIOLE COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,700 $20,000 Accounts receivable 32,300 18,300 Inventory 30,200 20,200 Property, plant, and equipment 59,700 77.400 Accumulated depreciation (29.400) (23,500) Total $130,500 $112,400 Liabilities and Stockholders' Equity Accounts payable $28,100 $16,900 Income taxes payable 7,500 8,400 Bonds payable 26,900 32.400 Common stock 17.600 14.000 Retained earnings 50.400 40,700 Liabilities and Stockholders' Equity Accounts payable $28,100 $16,900 Income taxes payable 7,500 8,400 Bonds payable 26.900 32,400 Common stock 17,600 14,000 Retained earnings 50,400 40,700 Total $130,500 $112,400 ORIOLE COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,600 Cost of goods sold 175,300 Gross profit 67,300 Selling expenses $18,675 Administrative expenses 6,225 24.900 Income from onerations 12.100 ORIOLE COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,600 Cost of goods sold 175,300 Gross profit 67,300 Selling expenses $18,675 Administrative expenses 6,225 24,900 Income from operations 42.400 Interest expense 3,100 Income before income taxes 39,300 Income tax expense 7,860 Net income $31,440 Additional data: 1. Depreciation expense was $17,000. 2. Dividends declared and paid were $21.740. Additional data: 1. Depreciation expense was $17,000. 2 Dividends declared and paid were $21,740. 3. 4. During the year, equipment was sold for $6,600 cash. This equipment originally cost $17,700 and had accumulated depreciation of $11,100 at the time of sale. Bonds were redeemed at their carrying value. S 5. Common stock was issued at par for cash Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 12. All operating expenses except for depreciation were paid in cash 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. Cash Flows from Operating Activities Cash Receipts from Customers Less cash payments: Increase in Accounts Receivable Decrease in Inventory To Suppliers Increase in Accounts Receivable Purchase of Equipment Decrease in Accounts Receivable Issuance of Common Stock Redemption of Bonds Sale of Bonds Increase in Inventory For Interest Cash Receipts from Customers For Income Taxes Increase in Income Taxes Payable For Operating Expenses Decrease in Accounts Payabe Sale of Equipment Increase in Accounts Payalbe Payment of Dividends ities 34740 Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Dividends Redemption of Bonds Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period 6600 6600 (23640) 17700 20000 37700