Instructions From the information given above, prepare a Cash Flow Statement for Lopez Inc. for the period ending 31st Dec., 2022 (Using indirect method). Show very clearly the cash generated under each of the three activities, namely: operating, investing, and financing providing all the details.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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cash flow statment
Assets
Long term investments
long-term assets
Brand name & Goodwell
The comparative statements of financial position of Lopez Inc. at the beginning and the end of
the year 2022 appear as follows.
Inventory
Accounts receivable
Cash
Total
J
Equity and Liabilities
Share capital ordinary
Retained earnings
Accounts payable
Income Tax payable
Total
Ć
Lopez Inc.
Statements of Financial Position
Dec.31, 2022
$ 56,000
115,000
50,000
100,000
65,000
12,000
$398,000
$250,000
61,000
53,000
34,000
$398,000
Jan. 1, 2022
$ 40,000
150,000
43,000
60,000
40,000
43,000
$376,000
$ 200,000
91,000
75,000
10,000
$376,000
Additional information
Net income
$90,000
Deprecation on long term assets $25,000
dividends of $15,000 were paid in 2022
a long-term asset with a net book value of $10,000 were sold at a gain of $17,000
Instructions
From the information given above, prepare a Cash Flow Statement for Lopez Inc. for the period
ending 31st Dec., 2022 (Using indirect method). Show very clearly the cash generated under
each of the three activities, namely: operating, investing, and financing providing all the details.
Transcribed Image Text:cash flow statment Assets Long term investments long-term assets Brand name & Goodwell The comparative statements of financial position of Lopez Inc. at the beginning and the end of the year 2022 appear as follows. Inventory Accounts receivable Cash Total J Equity and Liabilities Share capital ordinary Retained earnings Accounts payable Income Tax payable Total Ć Lopez Inc. Statements of Financial Position Dec.31, 2022 $ 56,000 115,000 50,000 100,000 65,000 12,000 $398,000 $250,000 61,000 53,000 34,000 $398,000 Jan. 1, 2022 $ 40,000 150,000 43,000 60,000 40,000 43,000 $376,000 $ 200,000 91,000 75,000 10,000 $376,000 Additional information Net income $90,000 Deprecation on long term assets $25,000 dividends of $15,000 were paid in 2022 a long-term asset with a net book value of $10,000 were sold at a gain of $17,000 Instructions From the information given above, prepare a Cash Flow Statement for Lopez Inc. for the period ending 31st Dec., 2022 (Using indirect method). Show very clearly the cash generated under each of the three activities, namely: operating, investing, and financing providing all the details.
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