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Use the following information to prepare the statement of cash flows for $2023$ using the indirect

method.

XYZ Inc.

Statement of Financial Position

As at December $31,2023$

Dec. $31,2023$ Dec. $31,2022$

Assets

Cash $$29,000$ $$15,000$

Accounts receivable $28,00019,000$

Prepaid expenses $9,00012,000$

Merchandise inventory $40,00029,000$

Long$-$term investments $35,00053,000$

Equipment $75,00048,000$

Accumulated depreciation $$ Equipment $(26,000)(22,000)$

Total Assets $$190,000$ $$154,000$

Liabilities and Shareholders$$ Equity

Liabilities

Accounts payable $$21,000$ $$9,000$

Dividends payable $3,0002,000$

Long$-$term bank loan payable $37,00045,000$

Shareholders$$ Equity

Common shares $40,00023,000$

Retained earnings $89,00075,000$

Total Liabilities and Shareholders$$ Equity $$190,000$ $$154,000$

XYZ Inc.

Statement of Earnings

For the Year Ended December $31,2023$

Sales $$206,780$

Cost of Sales $(85,460)$

Gross Profit $$121,320$

Operating Expenses

Salaries Expense $(69,090)$

Depreciation Expense $(4,000)$

Loss on sale of long$-$term investments $(5,000)$

Earnings from Operations $43,230$

Non$-$Operating Revenues or Expenses

Interest Expense $(4,730)$

Earnings before Income Tax $38,500$

Income Tax Expense $(11,500)$

Net Earnings $$27,000$

Additional Information:

$$ A cash dividend was declared and paid during the year.

$$ Long$-$term investments with a carrying amount of $$53,000$ were sold for $$48,000$ cash.

$$ Equipment was purchased with cash

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