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Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2022 using the indirect
Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2022 using the indirect method.
Spring is Here, Inc. Balance Sheets At December 31 | ||
2022 | 2021 | |
Assets: | ||
Cash | $174,525 | $65,200 |
Accounts receivable, net | 52,850 | 56,750 |
Merchandise inventory | 167,750 | 144,850 |
Prepaid expenses | 16,080 | 12,680 |
Equipment | 290,600 | 245,600 |
Accumulated depreciation-Equipment | (80,600) | (97,600) |
Total assets | $621,205 | $427,480 |
Liabilities: | ||
Accounts payable | $55,270 | $45,450 |
Income taxes payable | 10,320 | 12,240 |
Notes payable (long term) | 59,200 | 79,200 |
Total liabilities | $124,790 | $136,890 |
Equity: | ||
Common stock | 200,000 | 150,000 |
Paid-in capital in excess of par | 53,000 | 40,000 |
Retained earnings | 243,415 | 100,590 |
Total equity | $426,415 | $290,590 |
Total liabilities and equity | $621,205 | $427,480 |
Spring is Here, Inc. Income Statement For Year Ended December 31, 2022 | ||
Sales | $613,625 | |
Cost of goods sold | $222,540 | |
Depreciation expense | 25,000 | |
Other operating expenses | 106,260 | |
Interest expense | 6,400 | (360,200) |
Other gains (losses): | ||
Gain on sale of equipment | 2,850 | |
Income before taxes | 256,275 | |
Income taxes expense | 30,525 | |
Net income | $225,750 |
Additional Information a. Cash dividends declared and paid were $180,625. b. New equipment is purchased for $175,000 cash. c. Received $49,550 cash for the sale of equipment.
d. Issued new shares of stock receiving $182,000 cash.
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