Bonita Industries 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 Bonita Industries for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings BALANCE SHEETS $608000 (320000) 12/31/22 $408000 360000 382000 288000 $1438000 $ 177000 353000 360000 230000 318000 $1438000 $958000 (306000) 12/31/21 $194000 216000 479000 652000 $1541000 $96000 391000 600000 216000 238000 $1541000
Bonita Industries 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 Bonita Industries for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings BALANCE SHEETS $608000 (320000) 12/31/22 $408000 360000 382000 288000 $1438000 $ 177000 353000 360000 230000 318000 $1438000 $958000 (306000) 12/31/21 $194000 216000 479000 652000 $1541000 $96000 391000 600000 216000 238000 $1541000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Bonita Industries 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 Bonita Industries for 2022 and 2021 are provided
below.
Cash
Accounts receivable
Inventory
Property, plant and equipment
Less accumulated depreciation
Accounts payable
Income taxes payable
Bonds payable
Common stock
Retained earnings
BALANCE SHEETS
$608000
(320000 )
12/31/22
$408000
360000
382000
288000
$1438000
$ 177000
353000
360000
230000
318000
$1438000
$958000
(306000)
12/31/21
$ 194000
216000
479000
652000
$1541000
$96000
391000
600000
216000
238000
$1541000

Transcribed Image Text:Sales revenue
INCOME STATEMENT
For the Year Ended December 31, 2022
Cost of sales
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Income before taxes
Income taxes
Net income
The following additional data were provided:
1.
2.
$601000
194000
$8380000
The net cash provided (used) by investing activities is
7151000
1229000
795000
434000
74000
360000
90000
Dividends for the year 2022 were $190000.
During the year, equipment was sold for $242000. This equipment cost $354000 originally and had a book value of
$288000 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.
$ 270000
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