Problem 12-08A

Presented below are the financial statements of Cheyenne Company.

Cheyenne Company Comparative Balance Sheets December 31
Assets		2022			2021
Cash		$ 112,000			$ 64,000
Accounts receivable		64,000			44,800
Inventory		89,600			64,000
Property, plant, and equipment		192,000			249,600
Accumulated depreciation		(102,400	)		(76,800	)
Total		$355,200			$345,600
Liabilities and Stockholders Equity
Accounts payable		$ 60,800			$ 48,000
Income taxes payable		22,400			25,600
Bonds payable		54,400			105,600
Common stock		57,600			44,800
Retained earnings		160,000			121,600
Total		$355,200			$345,600

Cheyenne Company Income Statement For the Year Ended December 31, 2022
Sales revenue				$774,400
Cost of goods sold				560,000
Gross profit				214,400
Selling expenses		$57,600
Administrative expenses		19,200		76,800
Income from operations				137,600
Interest expense				9,600
Income before income taxes				128,000
Income tax expense				25,600
Net income				$ 102,400

Additional data:

1.		Depreciation expense was $56,000.
2.		Dividends declared and paid were $64,000.
3.		During the year equipment was sold for $27,200 cash. This equipment cost $57,600 originally and had accumulated depreciation of $30,400 at the time of sale.

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 purchases are on account.

Prepare a statement of cash flows for Cheyenne Company using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Cheyenne Company Statement of Cash Flows Choose the accounting period For the Year Ended December 31, 2022
Cash Flows from Operating Activities
Cash Receipts from Customers		755200
Less Cash Payments
To Suppliers	572800
For Operating Expenses	Enter a dollar amount
For Income Taxes	Enter a dollar amount
Select an item For Interest	Enter a dollar amount
		Enter a total amount for this subsection
Net Cash Provided by Operating Activities		Enter a total amount for section one
Cash Flows from Investing Activities
Sale of Equipment		Enter a total amount for section two
Issuance of Common Stock	Enter a dollar amount
Payment of Dividends	Enter a dollar amount
Redemption of Bonds	Enter a dollar amount
Net Cash used by Financing Activities		Enter a total amount for section three
Net Increase in Cash		Enter a total amount for three sections
Cash at Beginning of Period		Enter a dollar amount
Cash at End of Period		$Enter a total of the two previous amounts

Compute free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Free cash flow

Enter free cash flow in dollars