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Problems:

$4.$ Statement of Cash Flows $(70$ points$)$

Green Mountain Brew, Inc

Balance Sheets

$20232022$

Assets:

Cash and cash equivalents $ $112,000$ $ $72,000$

Receivables $790,000730,000$

Inventory $850,000890,000$

Prepaid expenses $250,000210,000$

Current Assets $2,002,0001,902,000$

Investments $250,000443,000$

Equipment $1,085,000795,000$

Accumulated depreciation $(340,000)(300,000)$

Land $990,0001,260,000$

Total Assets $ $3,987,000$ $ $4,100,000$

Liabilities and Stockholders' Equity:

Accounts payable $300,000285,000$

Accrued expenses $450,000475,000$

Current portion of long$-$term debt $225,000175,000$

Current Liabilities $975,000935,000$

Long$-$term debt $1,525,0002,000,000$

Common stock $2,160,0001,910,000$

Treasury stock $(915,000)(875,000)$

Retained earnings $242,000130,000$

Total Liabilities and Stockholders$$ Equity $ $3,987,000$ $ $4,100,000$

Green Mountain Brew, Inc.

Income Statement $2023$

Revenues $ $1,500,000$

Cost of Goods Sold $800,000$

Selling, General & Administrative expenses $253,840$

Gain on sale of investments $7,000$

Loss on sale of land $(200,000)$

Pretax income $253,160$

Income tax expense $53,160$

Net income $ $200,000$

Analysis: No investments or land was purchased in $2023.$ No equipment was sold in $2023.$ Depreciation expense of $$40,000$ in included in Cost of Goods Sold and SG&A expense. Cash dividends of $$88,000$ were declared and paid in $2023.$

Required:

$1.$ Provide a Statement of Cash Flows Green Mountain Brew, Inc. for $2023.$

$2.$ Why did you add $/$ or deduct the change in Inventory and the change in Accounts Payable?

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