DELILAH'S DELUXE DOGGIE DAYSPA provides the following information. ...

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Accounting

DELILAH'S DELUXE DOGGIE DAYSPA provides the following information.

DELILAH'S DELUXE DOGGIE DAYSPA

INCOME STATEMENT

For the Year Ended

12/31/2021

12/31/2022

Service Revenue

$ 361,500

$ 512,100

Expenses:

Rent Expense

28,000

32,000

Salaries Expense

166,800

232,225

Insurance Expense

6,000

9,000

Supplies Expense

12,200

22,805

Depreciation Expense

24,500

38,870

Total Operating Expenses

237,500

334,900

Net Income from Operations

$ 124,000

$ 177,200

Other Revenues and Expenses:

Interest Expense

(3,750)

(3,750)

Loss on sale of equipment

(17,500)

(3,750)

(18,750)

Net Income before Taxes

$ 120,250

$ 158,450

Income Tax Expense

11,000

30,000

Net Income

$ 109,250

$ 125,950

DELILAH'S DELUXE DOGGIE DAYSPA

BALANCE SHEET

12/31/2021

12/31/2022

Assets

Current Assets

Cash

$ 20,500

$ 26,870

Accounts Receivable

14,000

26,900

Supplies

1,300

12,500

Prepaid Insurance

9,000

6,000

Total Current Assets

$ 44,800

$ 72,270

Non-Current Assets

Land

$ 75,000

Equipment

$ 245,000

375,000

Accumulated Depreciation - Office Equipment

(24,500)

(50,870)

Total Non-Current Assets

220,500

399,130

Total Assets

$ 265,300

$ 471,400

Liabilities

Current Liabilities

Accounts Payable

$ 12,500

$ 9,500

Interest Payable

3,750

6,800

Salaries Payable

1,800

3,400

Total Current Liabilities

$ 18,050

$ 19,700

Long-term Liabilities

Notes Payable

$ 25,000

Bonds Payable

100,000

125,000

Total Long-term Liabilities

100,000

150,000

Total Liabilities

$ 118,050

$ 169,700

Stockholders' Equity

Capital Stock

$ 50,000

$ 100,000

Retained Earnings

97,250

201,700

Total Stockholders' Equity

147,250

301,700

Total Liabilities + Stockholders' Equity

$ 265,300

$ 471,400

Additional information for 2021:

1. Delilah's began business 1/1/2021

2. Equipment was purchased for cash in 2021

Additional information for 2022:

The equipment sold in 2022 had a cost of $100,000 and accumulated depreciation of $12,500

Equipment was purchased for cash in 2022

The land was acquired by issuing stock in the amount of $50,000 and issuing a note payable for $25,000.

No bonds were redeemed in 2022.

If dividend paid, it is paid in cash.

Please answer the following questions:

1. How much cash is provided by operating activities in 2022?

2. How much cash is received from the sale of equipment in 2022?

3. How much cash is used for purchasing equipment in 2022?

4. How much cash is paid for dividend in 2022?

5. There is a net ________ (please fill in "increase" or "decrease" in the blank) in cash for the year of 2022.

6. How much is the net change in cash for the year of 2022?

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