Please use the same format as the question.

Presented here are the financial statements of Vaughn Company. VAUGHN COMPANY Comparative Balance Sheets December 31 Assets 2021 Cash 2022 $36,000 32,600 $20,300 18,700 20,700 30,100 Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 59,700 77,200 (29.800) (23,300) $128,600 $113,600 $28,000 $ 16,100 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock 7,500 8,200 26,600 32,600 17.900 14,000 Retained earnings 48,600 42,700 Total $128,600 $113,600 VAUGHN COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,200 Cost of goods sold 175,400 Gross profit 65,800 Selling expenses $17,850 Administrative expenses 5,950 23,800 Income from operations 42.000 Interest expense 2.500 Income before income taxes 39.500 Income tax expense 7.900 Net income $31.600 VAUGHN COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241.200 Cost of goods sold 175,400 65,800 $17,850 5,950 23,800 42,000 Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 2,500 39,500 7.900 $31,600 Additional data: 1. 2. 3. Depreciation expense was $15,200. Dividends declared and paid were $25,700. During the year, equipment was sold for $8,800 cash. This equipment originally cost $17.500 and had accumulated depreciation of $8,700 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. 4. 5. Further analysis reveals the following. 1. 2. Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. 3. 4. Your answer is partially correct. Prepare a statement of cash flows for Vaughn Company using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) VAUGHN COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers $ 31000 Less cash payments: 14200 -13900 Decrease in Accounts Receivable -9400 Decrease in Accounts Payalbe 11900 2100 Net Cash Provided by Operating Activities 33100 Cash Flows from Investing Activities Sale of Equipment 9800 Net Cash Provided by Investing Activities 9800 Cash Flows from Financing Activities Payment of Dividends Sale of Bonds NOI Issuance of Common Stock Net Cash Used by Financing Activities Cash Flows from Investing Activities Sale of Equipment 9800 Net Cash Provided by Investing Activities 9800 Cash Flows from Financing Activities Payment of Dividends Sale of Bonds III Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash