Question 8 The Sleazy Corporation prepared the following statement of income and comparative statements of financial position for 2023. SLEAZY CORPORATION Income Statement For the Year Ended 31 January 2023 Sales Less: Cost of Goods Sold Gross Profit Less: Depreciation expense Other operating expenses Plus: Gain on Sale of Equipment Income Before Taxes Income Taxes Net Income SLEAZY CORPORATION Statement of Financial Position At January 31 Assets Cash Accounts Receivable Temporary Investments Merchandise Inventory Property, Plant, and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Shareholders' Equity Accounts Payable Other Accrued Payables Bonds Payable Common Shares Retained Earnings Total Liabilities & Shareholders' Equity $840,000 385,000 455,000 68,600 85,400 49,000 350,000 70,000 $280,000 2023 $ 14,000 89,600 35,000 336,000 350,000 (75,600) $749,000 $ 70,000 49,000 140,000 210,000 280,000 $749,000 2022 $ 12,600 77,000 35,000 196,000 350,000 (63,000) $607,600 $117,600 70,000 140,000 210,000 70,000 $607,600 Additional data: 1) Cash dividends of $70,000 were paid in June 2022. 2) Equipment that initially cost $140,000 was sold for $133,000 in January 2023. REQUIRED:Prepare a statement of cash flows using the indirect approach for 2023.
Question 8 The Sleazy Corporation prepared the following statement of income and comparative statements of financial position for 2023. SLEAZY CORPORATION Income Statement For the Year Ended 31 January 2023 Sales Less: Cost of Goods Sold Gross Profit Less: Depreciation expense Other operating expenses Plus: Gain on Sale of Equipment Income Before Taxes Income Taxes Net Income SLEAZY CORPORATION Statement of Financial Position At January 31 Assets Cash Accounts Receivable Temporary Investments Merchandise Inventory Property, Plant, and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Shareholders' Equity Accounts Payable Other Accrued Payables Bonds Payable Common Shares Retained Earnings Total Liabilities & Shareholders' Equity $840,000 385,000 455,000 68,600 85,400 49,000 350,000 70,000 $280,000 2023 $ 14,000 89,600 35,000 336,000 350,000 (75,600) $749,000 $ 70,000 49,000 140,000 210,000 280,000 $749,000 2022 $ 12,600 77,000 35,000 196,000 350,000 (63,000) $607,600 $117,600 70,000 140,000 210,000 70,000 $607,600 Additional data: 1) Cash dividends of $70,000 were paid in June 2022. 2) Equipment that initially cost $140,000 was sold for $133,000 in January 2023. REQUIRED:Prepare a statement of cash flows using the indirect approach for 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 8
The Sleazy Corporation prepared the following statement of income and
comparative statements of financial position for 2023.
SLEAZY CORPORATION
Income Statement
For the Year Ended 31 January 2023
Sales
Less: Cost of Goods Sold
Gross Profit
Less: Depreciation expense
Other operating expenses
Plus: Gain on Sale of Equipment
Income Before Taxes
Income Taxes
Net Income
SLEAZY CORPORATION
Statement of Financial Position
At January 31
Assets
Cash
Accounts Receivable
Temporary Investments
Merchandise Inventory
Property, Plant, and Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities and Shareholders' Equity
Accounts Payable
Other Accrued Payables
Bonds Payable
Common Shares
Retained Earnings
Total Liabilities & Shareholders' Equity
$840,000
385,000
455,000
68,600
85,400
49,000
350,000
70,000
$280,000
=======
2023
$ 14,000
89,600
35,000
336,000
350,000
(75,600)
$749,000
========
$ 70,000
49,000
140,000
210,000
280,000
$749,000
========
2022
$ 12,600
77,000
35,000
196,000
350,000
(63,000)
$607,600
$117,600
70,000
140,000
210,000
70,000
$607,600
========
Additional data:
(1) Cash dividends of $70,000 were paid in June 2022.
(2) Equipment that initially cost $140,000 was sold for $133,000 in January 2023.
REQUIRED:Prepare a statement of cash flows using the indirect approach for 2023.
5
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