Question
plish Brothers Inc. reported the following information for 2022. Splish Brothers Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Change Increase/Decrease Cash $177,000 $108,000
plish Brothers Inc. reported the following information for 2022.
Splish Brothers Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Change Increase/Decrease Cash $177,000 $108,000 $69,000 Increase Accounts receivable 186,000 66,000 120,000 Increase Inventory 132,000 0 132,000 Increase Prepaid expenses 18,000 12,000 6,000 Increase Land 165,000 210,000 45,000 Decrease Buildings 600,000 600,000 0 Accumulated depreciationbuildings (63,000 ) (42,000 ) 21,000 Increase Equipment 549,000 204,000 345,000 Increase Accumulated depreciationequipment (84,000 ) (30,000 ) 54,000 Increase Totals $1,680,000 $1,128,000
Liabilities and Stockholders Equity Accounts payable $129,000 $120,000 $9,000 Increase Accrued expenses payable 0 30,000 30,000 Decrease Bonds payable 300,000 450,000 150,000 Decrease Common stock ($1 par) 690,000 180,000 510,000 Increase Retained earnings 561,000 348,000 213,000 Increase Totals $1,680,000 $1,128,000
Splish Brothers Inc. Income Statement For the Year Ended December 31, 2022 Sales revenue $2,823,000 Cost of goods sold $1,425,000 Operating expenses 693,000 Interest expense 36,000 Loss on disposal of equipment 6,000 2,160,000 Income before income taxes 663,000 Income tax expense 195,000 Net income $468,000
Additional information: 1. Operating expenses include depreciation expense of $120,000.
2. Land was sold at its book value for cash.
3. Cash dividends of $255,000 were declared and paid in 2022.
4. Equipment with a cost of $498,000 was purchased for cash. Equipment with a cost of $153,000 and a book value of $108,000 was sold for $102,000 cash.
5. Bonds of $150,000 were redeemed at their face value for cash.
6. Common stock ($1 par) of $510,000 was issued for cash. Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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