Problem 12-08A a-b (Part Level Submission)

The following are the financial statements of Splish Brothers Inc..

Problem 12-08A a-b (Part Level Submission) The following are the financial statements of Splish Brothers Inc. Splish Brothers Inc. Comparative Balance Sheets December 31 2020 2019 Assets $36,600 $20,100 19,600 20,100 59,700 77,400 as Accounts receivable Inventory Equipment Accumulated depreciation-equipment (29,200) (23,000) 32,500 30,100 Total $129,700 $114,200 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,700 $16,800 8,400 32,500 13,000 43,500 $129,700 $114,200 7,400 27,300 17,700 48,600 Total Splish Brothers Inc. Income Statement For the Year Ended December 31, 2020 $243,000 176,000 67,000 24,600 42,400 3,900 Income before income taxes 38,500 8,800 $29,700 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income tax expense Net income Additional data: 1. Dividends declared and paid were $24,600 During the year, equipment was sold for $8,900 cash. This equipment cost $17,700 originally and had a book 2 value of $8,900 at the time of sale. 3. All depreciation expense, $15,000, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash Your answer is partially correct. Try again. Prepare a statement of cash flows for Splish Brothers Inc. 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).) Splish Brothers Inc. Statement of Cash Flows Cash Flows from Operating Activities 38500 For Income Taxes Add cash payments: Decrease in Accounts Receivable 26900 Increase in Inventory 12900 10000 32700 4700 24600 5200 25100 16500 20100 36600 16500 Click if you would like to Show Work for this question: Open Show Work