Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rronletano Comnanw Finanrial Infarmation Total equity 2,293,444201,924 Total liabilities and equity $390,,724 $341,820 Brookstone Company Income Statement For Year Ended December 31, 2022 Sales $288,000
Rronletano Comnanw Finanrial Infarmation Total equity 2,293,444201,924 Total liabilities and equity $390,,724 $341,820 Brookstone Company Income Statement For Year Ended December 31, 2022 Sales $288,000 Cost of goods sold $97,080 Depreciation expense 43,500 Other operating expenses 57,600 Interest expense 2,400 (200,580) Other gains (losses): Gain on sale of machinery Income before taxes Income taxes expense 8,80095,42023,900 Net income $71,520 Additional Information: (a) Some bonds were retired for $30,000 in cash. (b) Old machinery with an original cost of $50,000 and accumulated deprec $35,000 was sold for $23,000 cash. (c) New machinery was purchased for $77,000 cash. (d) Purchased long-term investments for $15,000 in cash (e) Cash dividends of $20,000 were paid. (f) Additional shares of stock were issued for $40,000 in cash. REQUIRED: Using the balance sheet, income statement and the additional information provided in the previous question, complete the statement of cash flows for Brookstone Company below. You should use the indirect method for determining cash flows from operating activities. Changes in current assets and liabilities could be increases or decreases. Please be sure to reflect your adjustment as a positive or negative number as appropriate. Brookstone Company Statement of Cash Flows For Year Ended December 31, 2021 Cash flows from operating activities: Net Income Adjustments: Change in accounts receivable Change in merchandise inventory Change in accounts payable Change in income taxes payable Add back: Depreciation expense Add back loss or deduct gain on sale of plant assets Net cash provided by operating activities (total of above amounts) Cash flows from investing activities: Cash received from sale of plant assets Cash paid to purchase longterm investments Cash paid for purchase of plant assets Net cash used in investing activities (total of above amounts) Cash flows from financing activities: Cash received from issuing stock Cash paid for dividends Cash paid to retire bonds Net cash used in financing activities (total of above amounts) Net increase in cash Cash balance at prior year-end Cash balance at current year-end
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started