Presented here are the financial statements of Lily Company. LILY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,400 $19,100 Accounts receivable 32,000 19,700 Inventory 29,600 20.100 Property, plant, and equipment 59,600 78,000 Accumulated depreciation (29,600) (23,500) Total $129,000 $113,400 Liabilities and Stockholders' Equity Accounts payable $28,100 $16,000 Income taxes payable 7.000 8,100 Bonds payable 27,400 32,200 Common stock 18,300 13,300 Retained earnings 48,200 43,800 Total $129,000 $113,400 LILY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,400 Cost of goods sold 176,800 Gross profit 65,600 Selling expenses $17,550 Administrative expenses 5,850 23,400 Income from operations 42,200 Interest expense 3,000 Income before income taxes 39,200 Income tax expense 7,840 Net income $31,360 Additional data: 1. Depreciation expense was $14,700. 2. Dividends declared and paid were $26,960. 3. 4. During the year, equipment was sold for $9,800 cash. This equipment originally cost $18,400 and had accumulated depreciation of $8,600 at the time of sale. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. 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. (a) Your answer is partially correct. Prepare a statement of cash flows for Lily 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).) LILY COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers Less cash payments: For Operating Expenses eTextbook and Media Save for Later Last saved 8 days ago. $ Attempts: 1 of 3 used Chmit Annesine