LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets Cash $ 25,200 243,800 LAG Network Inc. Comparative Balance Sheet Information 2023 Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity $ 81,250 48,400 276,650 160,400 (77,800) $ 488,900 $ 934,600 562,200 $ 372,400 December 31 $ 37,200 17,600 369,000 65,100 $ 488,900 269,000 $ 103,400 24,600 $78,800 2022 $ 55,600 38,800 256,200 139,600 (52,600) $ 437,600 $49,800 16,200 328,500 43,100 $437,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $20,800 cash. b. 16,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $56,800 of cash dividends during the year.
LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets Cash $ 25,200 243,800 LAG Network Inc. Comparative Balance Sheet Information 2023 Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity $ 81,250 48,400 276,650 160,400 (77,800) $ 488,900 $ 934,600 562,200 $ 372,400 December 31 $ 37,200 17,600 369,000 65,100 $ 488,900 269,000 $ 103,400 24,600 $78,800 2022 $ 55,600 38,800 256,200 139,600 (52,600) $ 437,600 $49,800 16,200 328,500 43,100 $437,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $20,800 cash. b. 16,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $56,800 of cash dividends during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please do not give solution in image format thanku
Transcribed Image Text:Required:
Prepare a statement of cash flows for 2023 that reports the cash inflows and outflows from operating activities according to the
indirect method. (List any deduction in cash and cash outflows as negative amounts.)
Cash flows from operating activities:
Profit
Adjustments to reconcile profit to net cash inflows from operating activities:
Depreciation expense
Cash flows from investing activities:
LAG NETWORK INC.
Statement of Cash Flows
For Year Ended December 31, 2023
Cash flows from financing activities:
$
78,800
$
$
78,800
0
0
0
Transcribed Image Text:LAG Network Inc.'s balance sheet and income statement are as follows:
LAG Network Inc.
Income Statement
For Year Ended December 31, 2023
Sales
Cost of goods sold
Gross profit
Operating expenses:
Depreciation expense
Other expenses
Total operating expenses
Profit from operations
Income taxes
Profit
Assets
Cash
$ 25,200
243,800
Accounts receivable
Merchandise inventory.
Equipment
Accumulated depreciation
Total assets
Liabilities and Equity
Accounts payable
Income taxes payable.
Common shares
Retained earnings
Total liabilities and equity
$ 934,600
562, 200
$ 372,400
LAG Network Inc.
Comparative Balance Sheet Information
2023
$ 81,250 $ 55,600
48,400
276,650
38,800
256,200
139,600
(52,600)
160,400
(77,800)
269,000
$ 103,400
24,600
$ 78,800
$ 488,900
December 31
2022
$ 437,600
$ 37,200
$ 49,800
17,600
369,000
16,200
328,500
43,100
65,100
$ 488,900 $ 437,600
Additional information regarding LAG Network Inc.'s activities during 2023:
a. Equipment is purchased for $20,800 cash.
b. 16,200 common shares are issued for cash at $2.50 per share.
c. Declared and paid $56,800 of cash dividends during the year.
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