Vaughn Manufacturing Comparative Balance Sheets December 31 Assets 2022 2021 $ 49,500 63,800 156,200 23.100 Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Total $ 74,800 55,000 166,595 16,808 159,500 220,000 (66,000) 247,500 (49,500) $824,703 143,000 220,000 (44,000) 170,500 (38,500) $743,600 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $ 49,203 330,000 220,000 225,500 $824,703 $ 39,600 330,000 176,000 198,000 $743,600 Total Additional information: 1. 2. 3. Operating expenses include depreciation expense of $46,200 ($22,000 of depreciation expense for buildings and $24,200 for equipment). Land was sold for cash at book value. Cash dividends of $13,200 were paid. Net income for 2022 was $40,700. Equipment was purchased for $101,200 cash. In addition, equipment costing $24,200 with a book value of $11,000 was sold for $8,800 cash. 44,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $44,000. 4. 5. 6. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Vaughn Manufacturing Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 40700 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 46200 Purchase of Equipment 2200 Decrease in Accounts Receivable 8800 Increase in Inventory -10395 Decrease in Prepaid Expenses 6292 Increase in Accounts Payable 9603 62700 103400 Net Cash used by Operating Activities Sale of Land 27500 Sale of Equipment 8800 Sale of Land 27500 Sale of Equipment 8800 Purchase of Equipment - 101200 Net Cash used by Investing Activities -64900 Cash Flows from Financing Activities Payment of Cash Dividends - 13200 Net Cash Provided by Financing Activities - 13200 Net Cash used by Financing Activities 187000 Net Increase in Cash $ 159500 Cash at Beginning of Period Net Income $ 27500