Problem 1 Statement of Cash Flows

MADDEN COMPANY

Comparative Balance Sheet

Assets
	2022	2021
Cash	$53,000	$12,000
Accounts receivable	6,000	8,000
Inventory	11,000	7,000
Prepaid expenses	2,000	3,000
Land	0	0
Equipment	20,000	20,000
Accumulated depreciationequipment	(3,000)	(2,000)
Total assets	$89,000	$48,000
Liabilities and Stockholders' Equity
Accounts payable	$ 1,000	$ 4,000
Long-term note payable	13,000	14,000
Common stock	38,000	18,000
Retained earnings	37,000	12,000
Total liabilities and stockholders' equity	$89,000	$48,000

MADDEN COMPANY

Income Statement

For the Year Ended December 31, 2022

Sales (all on credit) ..................................................................... $280,000

Expenses and losses

Cost of goods sold ................................................................ $192,000

Operating expenses, exclusive of depreciation............... 42,300

Depreciation expense .......................................................... 1,000

Interest expense ................................................................... 1,200

Loss on sale of land ............................................................. 2,500

Income taxes ......................................................................... 9,000

Total expenses and loss ................................................ 248,000

Net income .................................................................................. $ 32,000

Cash dividends of $7,000 were paid during the year. Land costing $20,000 was acquired by the issuance of common stock. The property was subsequently sold for $17,500 cash.

MADDEN COMPANY 2000 SOR Dispat Red MADDEN COMPANY Income For the Year Ended December 31, 2022 Saison cro 20.000 Dnes nos Cost of goods $12.00 Denne 43300 Dereito t000 Incense Lood 2.500 means STRO Tips and A. Net hdvidede 37,000 were all the Land og 5.20.000 or by the commons The Way old for $17.500 300 CAPettai For the Year December 21.2002 Cashow ENETO Add to reconcile come to me wed by activities ZETI cash flows from invest Gesc Cash Flows from financing TAN CA AGE