Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets   2022     2021   Cash   $ 242,400     $ 145,200   Accounts receivable   263,400     114,000   Inventory   337,500     308,550   Prepaid expenses   85,200     78,000   Long-term investments   414,000     327,000   Plant assets   855,000     727,500   Accumulated depreciation   (150,000 )   (156,000 ) Total   $2,047,500     $1,544,250                 Liabilities and Stockholders’ Equity             Accounts payable   $ 306,000     $ 201,900   Accrued expenses payable   49,500     63,000   Bonds payable   330,000     438,000   Common stock   660,000     525,000   Retained earnings   702,000     316,350   Total   $2,047,500     $1,544,250     Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue       $1,165,380 Less:              Cost of goods sold   $406,380          Operating expenses, excluding depreciation   37,230          Depreciation expense   139,500          Income tax expense   81,840          Interest expense   14,190          Loss on disposal of plant assets   22,500   701,640 Net income       $ 463,740 Additional information: 1.   New plant assets costing $300,000 were purchased for cash during the year. 2.   Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. 3.   Bonds payable matured and were paid off at face value for cash. 4.   A cash dividend of $78,090 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Condensed financial data of Shamrock, Inc. follow.

Shamrock, Inc.
Comparative Balance Sheets
December 31
Assets
 
2022
   
2021
 
Cash
 
$ 242,400
   
$ 145,200
 
Accounts receivable
 
263,400
   
114,000
 
Inventory
 
337,500
   
308,550
 
Prepaid expenses
 
85,200
   
78,000
 
Long-term investments
 
414,000
   
327,000
 
Plant assets
 
855,000
   
727,500
 
Accumulated depreciation
 
(150,000
)
 
(156,000
)
Total
 
$2,047,500
   
$1,544,250
 
             
Liabilities and Stockholders’ Equity
           
Accounts payable
 
$ 306,000
   
$ 201,900
 
Accrued expenses payable
 
49,500
   
63,000
 
Bonds payable
 
330,000
   
438,000
 
Common stock
 
660,000
   
525,000
 
Retained earnings
 
702,000
   
316,350
 
Total
 
$2,047,500
   
$1,544,250
 

 

Shamrock, Inc.
Income Statement Data
For the Year Ended December 31, 2022
Sales revenue
     
$1,165,380
Less:
       
     Cost of goods sold
 
$406,380
   
     Operating expenses, excluding depreciation
 
37,230
   
     Depreciation expense
 
139,500
   
     Income tax expense
 
81,840
   
     Interest expense
 
14,190
   
     Loss on disposal of plant assets
 
22,500
 
701,640
Net income
     
$ 463,740


Additional information:

1.   New plant assets costing $300,000 were purchased for cash during the year.
2.   Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash.
3.   Bonds payable matured and were paid off at face value for cash.
4.   A cash dividend of $78,090 was declared and paid during the year.


Prepare a statement of cash flows using the indirect method. 

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