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Shown below are comparative balance sheets for Sarasota Company. Sarasota Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 156,400 $ 50,600 Accounts
Shown below are comparative balance sheets for Sarasota Company. Sarasota Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 156,400 $ 50,600 Accounts receivable 202,400 174,800 Inventory 384,100 434,700 Land 184,000 230,000 Equipment 598,000 460,000 Accumulated depreciation-equipment (151,800) (73,600 ) Total $1,373,100 $1,276,500 Liabilities and Stockholders' Equity Accounts payable $ 89,700 $ 98,900 Bonds payable 345,000 460,000 Common stock ($1 par) 496,800 400,200 Retained earnings 441,600 317,400 Total $1,373,100 $1,276,500 Additional information: 1. Net income for 2022 was $213,900. 2. Depreciation expense was $78,200. 3. Cash dividends of $89,700 were declared and paid. 4. Bonds payable amounting to $115,000 were redeemed for cash $115,000. 5. Common stock was issued for $96,600 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)). Sarasota Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 213900 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 78200 Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Land Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Issuance of Common Stock Payment of Cash Dividends - Net Cash used by Financing Activities - Net Increase in Cash Cash at Beginning of Period Cash at End of Period
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