Question

Skysong, Inc. reported the following information for 2022.

Skysong, Inc. Comparative Balance Sheets December 31
Assets		2022			2021			Change Increase/Decrease
Cash		$76,700			$46,800			$29,900	Increase
Accounts receivable		80,600			28,600			52,000	Increase
Inventory		57,200			–0–			57,200	Increase
Prepaid expenses		7,800			5,200			2,600	Increase
Land		71,500			91,000			19,500	Decrease
Buildings		260,000			260,000			–0–
Accumulated depreciation—buildings		(27,300	)		(18,200	)		9,100	Increase
Equipment		237,900			88,400			149,500	Increase
Accumulated depreciation—equipment		(36,400	)		(13,000	)		23,400	Increase
Totals		$728,000			$488,800
Liabilities and Stockholders’ Equity
Accounts payable		$55,900			$52,000			$3,900	Increase
Accrued expenses payable		0			13,000			13,000	Decrease
Bonds payable		130,000			195,000			65,000	Decrease
Common stock ($1 par)		299,000			78,000			221,000	Increase
Retained earnings		243,100			150,800			92,300	Increase
Totals		$728,000			$488,800

Skysong, Inc. Income Statement For the Year Ended December 31, 2022
Sales revenue				$1,223,300
Cost of goods sold		$617,500
Operating expenses		300,300
Interest expense		15,600
Loss on disposal of equipment		2,600		936,000
Income before income taxes				287,300
Income tax expense				84,500
Net income				$202,800

Additional information:
1.		Operating expenses include depreciation expense of $52,000.
2.		Land was sold at its book value for cash.
3.		Cash dividends of $110,500 were declared and paid in 2022.
4.		Equipment with a cost of $215,800 was purchased for cash. Equipment with a cost of $66,300 and a book value of $46,800 was sold for $44,200 cash.
5.		Bonds of $65,000 were redeemed at their face value for cash.
6.		Common stock ($1 par) of $221,000 was issued for cash.

Use this information to 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).)

Answer 1