Question
Shown below are comparative balance sheets for Blue Spruce Company. Blue Spruce Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 88,400 $
Shown below are comparative balance sheets for Blue Spruce Company.
Blue Spruce Company Comparative Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
Assets | 2022 | 2021 | ||||
Cash | $ 88,400 | $ 28,600 | ||||
Accounts receivable | 114,400 | 98,800 | ||||
Inventory | 217,100 | 245,700 | ||||
Land | 104,000 | 130,000 | ||||
Equipment | 338,000 | 260,000 | ||||
Accumulated depreciationequipment | (85,800 | ) | (41,600 | ) | ||
Total | $776,100 | $721,500 | ||||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 50,700 | $ 55,900 | ||||
Bonds payable | 195,000 | 260,000 | ||||
Common stock ($1 par) | 280,800 | 226,200 | ||||
Retained earnings | 249,600 | 179,400 | ||||
Total | $776,100 | $721,500 |
Additional information:
1. | Net income for 2022 was $120,900. | |
2. | Depreciation expense was $44,200. | |
3. | Cash dividends of $50,700 were declared and paid. | |
4. | Bonds payable amounting to $65,000 were redeemed for cash $65,000. | |
5. | Common stock was issued for $54,600 cash. | |
6. | No equipment was sold during 2022. | |
7. | Land was sold for its book value. |
Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).
Blue Spruce Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Recelvable Decrease in Inventory Decrease in Accounts Payable Net Cash Provided by Operating Activities Net Cash Provided by Investing Activitles Net Cash Provided by Investing Activities Sale of Land Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activitles Issuance of Common Stock Payment of Cash Dividends Redemption of Bonds Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Perlod Cash at End of Period
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