Statement of Cash Flows $($Indirect Method$)$

BIRCH CORPORATION

Comparative Statements of Financial Position

December $31$

$20232022$

Cash $ $43,000$ $ $24,000$

Accounts receivable, net $31,00038,000$

Inventory $118,00082,000$

Land $120,000190,000$

Building $200,000200,000$

Accumulated depreciation $(50,000)(40,000)$

Equipment $1,030,000600,000$

Accumulated depreciation $(118,000)(94,000)$

$$1,374,000$ $$1,000,000$

Accounts payable $ $115,000$ $ $100,000$

$4\%$ Bonds payable $320,000-0-$

Common shares $750,000750,000$

Retained earnings $189,000150,000$

$$1,374,000$ $$1,000,000$

Additional data:

$1.$ Net income for the year was $$84,000.$

$2.$ Cash dividends were paid.

$3.$ Land was sold for $$80,000.$

$4.$ Old equipment was sold for $$70,000.$ This equipment had cost $$150,000$ and had accumulated depreciation of $$60,000$ to date of sale. New equipment was purchased to replace it$.$

Instructions

Prepare a statement of cash flows for calendar $2023,$ using the indirect method