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 59,700 77,400 Property.plant, and equipment Accumulated depreciation (23.500) (29,400) $130,500 Total $112,400 $28,100 $ 16.900 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock 7.500 8,400 26,900 32.400 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 operations 42,400 Interest expense 3,100 Income before income taxes 39,300 Income tax expense 7,860 Net income $31,440 Additional data: Additional data: 1. 2. 3. Depreciation expense was $17,000. Dividends declared and paid were $21,740. 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. Common stock was issued at par for cash. 4. 5. Cash Flows from Operating Activities Net Income $ 32300 Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense $ 14000 Increase in Accounts Payable 11200 Decrease in Income Taxes Payable -900 Increase in Inventory -10000 Increase in Accounts Recevable -14000 300 Net Cash Provided by Operating Activities 32600 Cash Flows from Investing Activities Sale of Equipment 9600 Net Cash Provided by Investing Actitles 9600 Cash Flows from Financing Activities Issuance of Common Stock 3600 Redemption of Bonds -5500 Payment of Dividends -22600 Net Cash Used by Financing Activitles -24500 Net Increase in Cash 17700 Cash at Beginning of Period 20000 Cash at End of Period 37700