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Tamarisk, Inc. reported the following information for 2022. Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Tamarisk, Inc. Comparative Balance Sheets December 31 Income before income taxes Income tax expense Net income 2022 $135,700 $1,092,500 142,600 531,300 101,200 27,600 13,800 126,500 4,600 460,000 $1,288,000 (48,300 ) 420,900 Tamarisk, Inc. Income Statement For the Year Ended December 31, 2022 (64,400 ) $98,900 $1,288,000 0 230,000 529,000 430,100 $2,164,300 1,656,000 508,300 149,500 $358,800 2021 $82,800 50,600 -0- 9,200 161,000 460,000 (32,200 ) 156,400 (23,000) $864,800 $92,000 23,000 345,000 138,000 266,800 $864,800 Change Increase/Decrease $52,900 Increase 92,000 Increase 101,200 Increase 4,600 Increase 34,500 Decrease -0- 16,100 Increase 264,500 Increase 41,400 Increase $6,900 Increase 23,000 Decrease 115,000 Decrease 391,000 Increase 163,300 Increase

Tamarisk, Inc. reported the following information for 2022. Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Tamarisk, Inc. Comparative Balance Sheets December 31 Income before income taxes Income tax expense Net income 2022 $135,700 $1,092,500 142,600 531,300 101,200 27,600 13,800 126,500 4,600 460,000 $1,288,000 (48,300 ) 420,900 Tamarisk, Inc. Income Statement For the Year Ended December 31, 2022 (64,400 ) $98,900 $1,288,000 0 230,000 529,000 430,100 $2,164,300 1,656,000 508,300 149,500 $358,800 2021 $82,800 50,600 -0- 9,200 161,000 460,000 (32,200 ) 156,400 (23,000) $864,800 $92,000 23,000 345,000 138,000 266,800 $864,800 Change Increase/Decrease $52,900 Increase 92,000 Increase 101,200 Increase 4,600 Increase 34,500 Decrease -0- 16,100 Increase 264,500 Increase 41,400 Increase $6,900 Increase 23,000 Decrease 115,000 Decrease 391,000 Increase 163,300 Increase

FINANCIAL ACCOUNTING
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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I need help preparing a statement of cash flows using the indirect method.

**Additional Information:** 1. Operating expenses include a depreciation expense of $92,000. 2. Land was sold at its book value for cash. 3. Cash dividends of $195,500 were declared and paid in 2022. 4. Equipment with a cost of $381,800 was purchased for cash. Equipment with a cost of $117,300 and a book value of $82,800 was sold for $78,200 cash. 5. Bonds of $115,000 were redeemed at their face value for cash. 6. Common stock ($1 par) of $391,000 was issued for cash. **Instructions:** Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a minus sign e.g., -15,000 or in parentheses e.g., (15,000).)
Transcribed Image Text:**Additional Information:** 1. Operating expenses include a depreciation expense of $92,000. 2. Land was sold at its book value for cash. 3. Cash dividends of $195,500 were declared and paid in 2022. 4. Equipment with a cost of $381,800 was purchased for cash. Equipment with a cost of $117,300 and a book value of $82,800 was sold for $78,200 cash. 5. Bonds of $115,000 were redeemed at their face value for cash. 6. Common stock ($1 par) of $391,000 was issued for cash. **Instructions:** Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a minus sign e.g., -15,000 or in parentheses e.g., (15,000).)
### Tamarisk, Inc. Financial Overview for 2022 **Comparative Balance Sheets (as of December 31)** #### Assets - **Cash**: - 2022: $135,700 - 2021: $82,800 - Change: $52,900 Increase - **Accounts Receivable**: - 2022: $142,600 - 2021: $50,600 - Change: $92,000 Increase - **Inventory**: - 2022: $101,200 - 2021: $0 - Change: $101,200 Increase - **Prepaid Expenses**: - 2022: $13,800 - 2021: $9,200 - Change: $4,600 Increase - **Land**: - 2022: $126,500 - 2021: $161,000 - Change: $34,500 Decrease - **Buildings**: - 2022: $460,000 - 2021: $460,000 - Change: $0 - **Accumulated Depreciation—Buildings**: - 2022: ($48,300) - 2021: ($32,200) - Change: $16,100 Increase - **Equipment**: - 2022: $420,900 - 2021: $156,400 - Change: $264,500 Increase - **Accumulated Depreciation—Equipment**: - 2022: ($64,400) - 2021: ($23,000) - Change: $41,400 Increase - **Totals**: - 2022: $1,288,000 - 2021: $864,800 #### Liabilities and Stockholders' Equity - **Accounts Payable**: - 2022: $98,900 - 2021: $92,000 - Change: $6,900 Increase - **Accrued Expenses Payable**: - 2022: $0 - 2021: $23,000 - Change: $23,000
Transcribed Image Text:### Tamarisk, Inc. Financial Overview for 2022 **Comparative Balance Sheets (as of December 31)** #### Assets - **Cash**: - 2022: $135,700 - 2021: $82,800 - Change: $52,900 Increase - **Accounts Receivable**: - 2022: $142,600 - 2021: $50,600 - Change: $92,000 Increase - **Inventory**: - 2022: $101,200 - 2021: $0 - Change: $101,200 Increase - **Prepaid Expenses**: - 2022: $13,800 - 2021: $9,200 - Change: $4,600 Increase - **Land**: - 2022: $126,500 - 2021: $161,000 - Change: $34,500 Decrease - **Buildings**: - 2022: $460,000 - 2021: $460,000 - Change: $0 - **Accumulated Depreciation—Buildings**: - 2022: ($48,300) - 2021: ($32,200) - Change: $16,100 Increase - **Equipment**: - 2022: $420,900 - 2021: $156,400 - Change: $264,500 Increase - **Accumulated Depreciation—Equipment**: - 2022: ($64,400) - 2021: ($23,000) - Change: $41,400 Increase - **Totals**: - 2022: $1,288,000 - 2021: $864,800 #### Liabilities and Stockholders' Equity - **Accounts Payable**: - 2022: $98,900 - 2021: $92,000 - Change: $6,900 Increase - **Accrued Expenses Payable**: - 2022: $0 - 2021: $23,000 - Change: $23,000
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