Condensed financial data of Coronado Industriesfollow.
Coronado Industries
Comparative Balance Sheets
December 31 |
|---|
Assets | | 2022 | | | 2021 | |
|---|
Cash | | $ 105,040 | | | $ 62,920 | |
|---|
Accounts receivable | | 114,140 | | | 49,400 | |
|---|
Inventory | | 146,250 | | | 133,705 | |
|---|
Prepaid expenses | | 36,920 | | | 33,800 | |
|---|
Long-term investments | | 179,400 | | | 141,700 | |
|---|
Plant assets | | 370,500 | | | 315,250 | |
|---|
Accumulated depreciation | | (65,000 | ) | | (67,600 | ) |
|---|
Total | | $887,250 | | | $669,175 | |
|---|
| | | | | | |
Liabilities and Stockholders’ Equity | | | | | | |
|---|
Accounts payable | | $ 132,600 | | | $ 87,490 | |
|---|
Accrued expenses payable | | 21,450 | | | 27,300 | |
|---|
Bonds payable | | 143,000 | | | 189,800 | |
|---|
Common stock | | 286,000 | | | 227,500 | |
|---|
Retained earnings | | 304,200 | | | 137,085 | |
|---|
Total | | $887,250 | | | $669,175 | |
|---|
Coronado Industries
Income Statement Data
For the Year Ended December 31, 2022 |
|---|
Sales revenue | | | | $504,998 |
|---|
Less: | | | | |
|---|
Cost of goods sold | | $176,098 | | |
|---|
Operating expenses, excludingdepreciation | | 16,133 | | |
|---|
Depreciation expense | | 60,450 | | |
|---|
Income tax expense | | 35,464 | | |
|---|
Interest expense | | 6,149 | | |
|---|
Loss on disposal of plantassets | | 9,750 | | 304,044 |
|---|
Net income | | | | $ 200,954 |
|---|
Additional information:
| 1. | | New plant assets costing$130,000 were purchased for cash during the year. |
| 2. | | Old plant assets having anoriginal cost of $74,750 and accumulated depreciation of $63,050were sold for $1,950 cash. |
| 3. | | Bonds payable matured andwere paid off at face value for cash. |
| 4. | | A cash dividend of $33,839was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g.(15,000).)
