How does Interest Payable impact Declan's Designs' 2022 Statement of Cash Flows? Declan's Designs Balance SheetDeclan's Designs Income StatementASSETS12/31/202112/31/2022For the Year EndingCurrent Assets12/31/2022Cash and Cash EquivalentsAccounts Receivable, NetMerchandise InventoryTotal Current Assets$90,00097,000400,000587,000$294,000101,000475,000870,000Sales Revenue$225,000(16,000)209,000(22,000)187,000(12,000)(5,000)170,000(7,000)$163,000CGSGross MarginSG&APPE, NetGoodwill, Net62,000600,000$1,249,00070,000600,000$1,540,000Operating IncomeInterest ExpenseTotal AssetsLoss on Sale of PPEPre-Tax IncomeIncome Tax ExpenseLIABILITIES & SHAREHOLDERS' EQUITYCurrent LiabilitiesAccounts PayableInterest PayableDividends PayableNet Income26,0003,00020,00049,00017,0005,00010,00032,000Additional Information regarding Declan's Designs' 12/31/22 financials:Total Current LiabilitiesMortgage PayableLong-Term Bank LoanTotal LiabilitiesPROPERTY, PLANT & EQUIPMENTPPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning ofthe year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which isincluded in SG&A. New PPE was bought during the year for $22,000 (in cash).500,000500,000200,000732,000549,000Shareholder's EquityNote: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement.Preferred StockCommon StockHint #1: The most recent year is not always in the left column.Additional Paid in CapitalRetained EarningsTotal Shareholder’s Equity8,00054,000638,000700,00010,00060,000738,000808,000Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall grossPPE less accumulated depreciation equals net PPE.Hint #3: Never “plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE(capital expenditures) from the annual decrease in gross PPE (sale of PPE).Total Liabilities &Shareholders’ Equity$1,249,000$1,540,000Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in commonstock (stated par value) and additional paid in capital (APIC).Hint #5: Dividends declared (the decrease in RE) is not the same as dividends paid (the decrease individends payable). To find dividends paid, set up your dividends payable account with the beginning andending balances from the balance sheet. Increase dividends paid by the amount of dividends declared.Then plug for the decrease in dividends payable (which represents dividends paid).

Declan's Designs Balance Sheet Declan's Designs Income Statement ASSETS 12/31/2021 12/31/2022 For the Year Ending 12/31/2022 Current Assets Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory $90,000 97,000 400.000 587,000 $294,000 101,000 475,000 870,000 $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Sales Revenue CGS Total Current Assets Gross Margin SG&A Operating Income Interest Expense PPE, Net Goodwill, Net Total Assets 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Loss on Sale of PPE Pre-Tax Income LIABILITIES & SHAREHOLDERS' EQUITY Income Tax Expense Current Liabilities Net Income Accounts Payable Interest Payable Dividends Payable Total Current Liabilities 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Mortgage Payable Long-Term Bank Loan Total Liabilities PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning of the year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is included in SG&A. New PPE was bought during the year for $22,000 (in cash). 500,000 500,000 200,000 732,000 549.000 Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. Shareholder's Equity Preferred Stock Hint #1: The most recent year is not always in the left column. 8,000 54,000 638,000 700,000 Common Stock Additional Paid in Capital Retained Earnings Total Shareholder's Equity 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #3: Never "plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders' Equity $1,249,000 $1,540,000 Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in common