Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $407000 $ 194000 Accounts receivable 360000 216000 Inventory 386000 479000 Property, plant and equipment $610000 $959000 Less accumulated depreciation (320000 ) 290000 (306000 ) 653000 $1443000 $1542000 . Accounts payable $ 174000 $ 97000 Income taxes payable 352000 391000 Bonds payable 359000 600000 Common stock 240750 216000 Retained earnings 317250 238000 $1443000 $1542000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue $8380000 Cost of sales 7154000 Gross profit 1226000 Selling expenses $602000 Administrative expenses 191000 793000 Income from operations 433000 Interest expense 74000 Income before taxes 359000 Income taxes 89750 Net income $ 269250 The following additional data were provided: 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $240000. This equipment cost $351000 originally and had a book value of $290000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is

Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $407000 $ 194000 Accounts receivable 360000 216000 Inventory 386000 479000 Property, plant and equipment $610000 $959000 Less accumulated depreciation (320000) 290000 (306000) 653000 $1443000 $1542000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 174000 352000 359000 240750 317250 $1443000 $ 97000 391000 600000 216000 238000 $1542000 $8380000 7154000 1226000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales Gross profit Selling expenses $602000 Administrative expenses 191000 Income from operations Interest expense Income before taxes Income taxes 793000 433000 74000 359000 89750 $ 269250 Net income The following additional data were provided: 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $240000. This equipment cost $351000 originally and had a book value of $290000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is $54000. $128750. $89750. $39000