Question
Required information [The following information applies to the questions displayed below.) Bluegrass Corporation's current year income statement, comparative balance sheets, and additional information follow.
Required information [The following information applies to the questions displayed below.) Bluegrass Corporation's current year income statement, comparative balance sheets, and additional information follow. BLUEGRASS CORPORATION Income Statement Sales For the Year Ended December 31, 2023 Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 133,400 Depreciation expense other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 587,500 286,000 301,500 21,750 155,150 (6,125) 140,225 25,650 BLUEGRASS COMPANY Comparative Balance Sheets. December 31, $ 114,575 2023 2022 Assets Cash Accounts receivable Prepaid expenses Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity $ 51,400 67,310 277,156 1,300 397,166 156,500 (37,125) $ 516,541 $ 74,500 51,625 252,800 2,025 380, 950 109,000 (46,500) $ 443,450 440 4 Comparative Balance Sheets December 31, Assets Cash Accounts receivable. Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable. Total liabilities. Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions 2023 $ 51,400 67,310 277,156 1,300 397,166 156,500 (37,125) $ 516,541 $ 54,141 74,800 128, 941 164,250 39,000 2022 $ 74,500 51,625 252,800 2,025 380,950 109,000 (46,500) $ 443,450 $ 116,175 55,950 172, 125 151,250 0 184, 350 120,075 $ 516,541 $ 443,450 a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300. 1. Prepare a complete statement of cash flows using the indirect method for the year ended December 31, 2023. (Amounts to be deducted should be indicated with a minus sign.) BLUEGRASS CORPORATION Statement of Cash Flows For Current Year Ended December 312 2023 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, 2022 Cash balance at December 31, 2023
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