Prepare a statement of cash flows for the year 2022. Use the indirect method for the operating activities

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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Additional information:
1. Held-to-maturity securities (long-term investment) carried at a cost of $43,000 on December 31, 2021,
were sold in 2022 for $34,000.
2. Equipment that cost $50,000 and 80% depreciated was sold in 2022 for $8,000.
3. Net income was $46,000 and $50,000 for 2022 and 2021, respectively.
4. Dividends paid amounted to $10,000.
5. A building was purchased at $500,000 on December 31, 2022 by issuing common stock at par
6. Transactions other than the purchase of a building were made in cash.
Prepare a statement of cash flows for the year 2022. Use the indirect method for the operating activities.
*Be sure to prepare the investing and financing activities as well.
2. Presented below are data from the records of Metro Co.
Cash
Accounts receivable
Long-term investment
Machine and equipment
Building
Accumulated depreciation
Accounts payable
Bonds payable
Common stock
Retained earnings
2022
15,000
85,000
10,000
335,000
500,000
20,000
40,000
75,000
754,000
56,000
2021
8,000
60,000
53,000
215,000
0
40,000
22,000
0
254,000
20,000
Transcribed Image Text:2. Presented below are data from the records of Metro Co. Cash Accounts receivable Long-term investment Machine and equipment Building Accumulated depreciation Accounts payable Bonds payable Common stock Retained earnings 2022 15,000 85,000 10,000 335,000 500,000 20,000 40,000 75,000 754,000 56,000 2021 8,000 60,000 53,000 215,000 0 40,000 22,000 0 254,000 20,000
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