Prepare Balance Sheet, Statement of Cash Flows, Income statement for first quater of 2022

December 31, 2022

Sales totaled $200 million. All sales were on account. Cash collections totaled $175 million.

I approve the allowance for doubtful accounts to be set at 4% of the March 31 A/R balance.

Selling, general, and administrative costs totaled $20 million, all on a short-term credit basis with vendors. We paid $19 million (cash) in outstanding accounts payable during the quarter.

We maintain a perpetual inventory system and use the Last-in-first-out (LIFO) inventory cost flow assumption. Transactions for the quarter were as follows. All purchases were in cash.

Purchases		Sales
1/1 (beg. balance)	60 million @ $1.00
1/31	20 million @ $1.10
		2/1	25 million @ $1.90
		2/28	50 million @ $2.00
3/1	30 million @ $1.20
		3/31	25 million @ $2.10
Units avail. for sale	110 million	Units sold	100 million

We purchased new equipment for $10 million in cash. Depreciation expense on all equipment totaled $50 million during the quarter.

My companys long-term debt at December 31, 2021 consisted of two separate bond issues:

Date of issuance	Principal	Term	Coupon rate (or stated rate)
January 1, 2017	$40 million	10 years	6.5% payable each January 1 beginning 2018
January 1, 2020	$60 million	10 years	9% payable each January 1 beginning 2021

My company issued all bonds at par so we do not amortize bond discounts or premiums. We have made all interest payments on schedule, including during the past quarter on January 1. We did not incur new debt during the quarter. Interest is accrued quarterly.

On March 31, we declared a $0.50 per share cash dividend to be paid in the second quarter.

My company paid (in cash) the December 31, 2021 balance due for income taxes. My company expects to pay income taxes due on first-quarter income in the second quarter. The income tax rate is a flat 20%.

Scooby Snacks, Inc. Balance Sheet, December 31, 2021 (in millions of US dollars) Assets Liabilities and stockholders' equity Accounts payable $10 Interest payable Income tax payable Long-term debt Common stock (no par, 100 million shares authorized, issued, o/s) Retained earnings Total liabilities and stockholder's equity \begin{tabular}{rr} 337 \\ \hline$763 \\ \hline \hline \end{tabular}