Cash $59,000 $23,500 Accounts receivable 43,000 25,500 Inventory 50,000 29,500 Prepaid expenses 18,500 34,000 Long-term investments 0 42,000 Equipment 97,500 45,500 Accumulated depreciation—equipment (45,000) (27,500) Total assets $223,000 $172,500 Liabilities and Stockholder's Equity Accounts payable $42,000 $19,500 Bonds payable 48,500 70,000 Common stock 65,000 35,500 Retained earnings 67,500 47,500 Total liabilities and stockholders' equity $223,000 $172,500 Additional information: 1. Net income for the year ending December 31, 2022 was $47,500. 2. Cash dividends of $27,500 were declared and paid during the year. 3. Long-term investments that had a cost of $42,000 were sold for $26,500. 4. Sales for 2022 were $132,500. 5. No equipment was sold during the year. 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).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Liabilities and Stockholder's Equity
Cash	$59,000	$23,500
Accounts receivable	43,000	25,500
Inventory	50,000	29,500
Prepaid expenses	18,500	34,000
Long-term investments	0	42,000
Equipment	97,500	45,500
Accumulated depreciation—equipment	(45,000)	(27,500)
Total assets	$223,000	$172,500
Accounts payable	$42,000	$19,500
Bonds payable	48,500	70,000
Common stock	65,000	35,500
Retained earnings	67,500	47,500
Total liabilities and stockholders' equity	$223,000	$172,500

Additional information:
1.		Net income for the year ending December 31, 2022 was $47,500.
2.		Cash dividends of $27,500 were declared and paid during the year.
3.		Long-term investments that had a cost of $42,000 were sold for $26,500.
4.		Sales for 2022 were $132,500.
5.		No equipment was sold during the year.

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).)

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