Presented here are the financial statements of Swifty Company SWIFTY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,300 $ 19,000 Accounts receivable 32.900 19,900 Inventory 30.800 20.300 Property, plant, and equipment 59,900 77.400 Accumulated depreciation (29,300) (23,300) Total $ 130,600 $ 113.300 Liabilities and Stockholders' Equity Accounts payable $ 28,400 $ 16,600 Income taxes payable 7,000 8,100 Bonds payable 27.800 32.000 Common stock 17,800 14,300 Retained earnings 49.600 42.300 Total $ 130,600 $ 113.300 SWIFTY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $ 242,000 Cost of goods sold 176,500 Gross profit 65,500 Selling expenses $17,325 Administrative expenses 5,775 23.100 Income from operations 42,400 Interest expense 2.500 Income before income taxes 39,900 Income tax expense 7,980 Net income $ 31,920 Additional data: 1. Depreciation expense was $ 15,900. 2. Dividends declared and paid were $ 24,620. . During the year, equipment was sold for $7,600 cash. This equipment originally cost $ 17,500 and had accumulated depreciation of $ 9,900 at the time of sale. 3. 4. 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. Your answer is partially correct. Prepare a statement of cash flows for Swifty Company using the direct method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis eg. (15,000).) SWIFTY COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 V Cash Flows from Operating Activities Cash Receipts from Customers $ 247775 Less cash payments: To Suppliers 144580 For Operating Expenses V 7200 For Interest V 2500 i For Income Taxes 1100 13800 Net Cash Provided by Operating Activities 35020 Cash Flows from Investing Activities Sale of Equipment 7600 Net Cash Provided by Investing Activities 7600 Cash Flows from Financing Activities Payment of Dividends (24620) Issuance of Common Stock v 3500 Redemption of Bonds 4200 Net Cash Used by Financing Activities 25320 Net Increase in Cash 17300 Cash at Beginning of Period 19000 Cash at End of Period $ 36300 (b) Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Free cash flow $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit