Question 4 Cash Flow Statement

You are provided with the partial balance sheet for Comrad Corporation for the years ended December 31, 2022 and 2023 along with the Statement of Income for the year ended December 31, 2023.

Partial Balance Sheet -	2023	2022
Accounts receivable	$3,44,000	$2,69,500
Allowance for doubtful accounts	55,000	42,000
Inventory	6,87,000	7,24,000
Prepaid expenses	26,700	22,000
Land	3,50,000	5,00,000
Property, plant and equipment	25,78,000	23,37,000
Accumulated depreciation	-14,20,000	-13,75,000
Accounts payable	2,79,000	3,15,000
Income taxes payable	19,500	28,800
Unearned revenues	34,000	17,500

Statement of Income 2023
Sales		$28,75,000
Cost of goods sold		12,50,000
Gross margin		16,25,000
Operating expenses
Depreciation	1,75,000
Bad debt expense	37,000
Other	11,63,000	13,75,000
Operating income		2,50,000
Gain on sale of PPE		54,000
Loss on sale of land		-20,000
Net income before taxes		2,84,000
Income tax expense		91,200
Net income		$1,92,800

Additional Information:

1. Accounts written off during the year amounted to $30,000.

2. Land costing $180,000 was purchased with cash in 2023.

3. The original cost of the Property Plant and Equipment (PPE) sold was $250,000. One half of the new PPE acquired was financed by issuing shares.

Required

a. Prepare the Cash Flow from Investing portion of the Statement of Cash Flow.

b. Calculate the Cash collected from customers using the direct method.