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The comparative balance sheets as of December 31, 2023, and 2022 and the income statement for the year ended December 31, 2023, for Lynbrook
The comparative balance sheets as of December 31, 2023, and 2022 and the income statement for the year ended December 31, 2023, for Lynbrook Inc. appear on the following page. The accounting department at Lynbrook provided the additional information needed for you to prepare the 2023 statement of cash flows. 1. The company sold equipment that had an original cost of $12 million and accumulated depreciation of $7 million. The cash proceeds from the sale were $7 million. The gain on the sale was $2 million. 2. The company issued $20 million in new bonds payable at par and repaid a portion of the bonds payable that matured during the year. 3. The company paid a cash dividend during the year. 4. The company did not issue or repurchase any shares of common stock during the year. Required: Prepare a complete statement of cash flows for the year ending December 31, 2023 (operating, investing, and financing). Use the indirect method to prepare the operating activities section of the statement. Note: Lynbrook includes depreciation expense as part of selling and administrative expenses in the income statement. Set up a T account for Accumulated Depreciation to determine the depreciation expense that were incurred in 2023. Reminder: Continue using the excel HW policies for preparing your solution to the problem.
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