90.2K

Verified Solution

Link Copied!

$\backslash$table$[[\backslash$table$[[$ICE Drilling Inc.$],[$Comparative Balance Sheet Information$]]],[,2023,2022],[$Cash$,$$$130,680,$$$181,640],[$Accounts receivable,$155,600,121,160],[$Merchandise inventory,$623,200,575,600],[$Prepaid expenses,$12,140,24,000],[\backslash$table$[[$Equipment$]],359,280,256,400],[$Accumulated depreciation,$87,560,108,560],[$Accounts payable,$189,500,243,240],[$Current notes payable,$32,400,24,000],[$Notes payable,$210,000,122,400],[$Common shares,$460,800,360,000],[$Retained earnings,$300,640,300,600]]$

Additional information regarding ICE Drilling's activities during $2023$:

Loss on sale of equipment is $$13,480.$

Paid $$72,280$ to reduce a long$-$term note payable.

Equipment costing $$115,000,$ with accumulated depreciation of $$73,000,$ is sold for cash.

Equipment costing $$217,880$ is purchased by paying cash of $$58,000$ and signing a long$-$term note payable for the balance.

Borrowed $$8,400$ by signing a short$-$term note payable.

Issued $10,080$ common shares for cash at $$10$ per share.

Declared and paid cash dividends of $$141,160.$ Other information:

a$.$ All sales are credit sales.

b$.$ All credits to accounts receivable in the period are receipts from customers.

c$.$ Purchases of merchandise are on credit.

d$.$ All debits to accounts payable in the period result from payments for merchandise.

e$.$ The only decrease in income taxes payable is for payment of taxes.

f$.$ The other expenses are paid in advance and are initially debited to Prepaid Expenses.

Required:

Prepare a statement of cash flows for $2023$ using the direct method to report cash inflows and outflows from operating activities.

$($List any deduction in cash and cash outflows as negative amounts.$)$

ICE DRILLING INC.

Statement of Cash Flows

For Year Ended December $31,2023$ Required:

Prepare a statement of cash flows for $2023$ using the direct method to report cash inflows and outflows from operating activities.

$($List any deduction in cash and cash outflows as negative amounts.$)$ICE Drilling Inc.$\text{'}$s balance sheet information and income statement are as follows:

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer