Question

Shown below are comparative balance sheets for Carla Vista Company.

Carla Vista Company Comparative Balance Sheets December 31
Assets		2022			2021
Cash		$ 170,000			$ 55,000
Accounts receivable		220,000			190,000
Inventory		417,500			472,500
Land		200,000			250,000
Equipment		650,000			500,000
Accumulated depreciation—equipment		(165,000	)		(80,000	)
Total		$1,492,500			$1,387,500
Liabilities and Stockholders’ Equity
Accounts payable		$ 97,500			$ 107,500
Bonds payable		375,000			500,000
Common stock ($1 par)		540,000			435,000
Retained earnings		480,000			345,000
Total		$1,492,500			$1,387,500

Additional information:

1.		Net income for 2022 was $232,500.
2.		Depreciation expense was $85,000.
3.		Cash dividends of $97,500 were declared and paid.
4.		Bonds payable amounting to $125,000 were redeemed for cash $125,000.
5.		Common stock was issued for $105,000 cash.
6.		No equipment was sold during 2022.
7.		Land was sold for its book value.

Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).

Carla Vista Company Statement of Cash Flows Choose the accounting period                                                          December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022
Select an opening name for section one                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockNet IncomePayment of Cash DividendsPurchase of EquipmentRedemption of BondsSale of Land		$Enter a dollar amount
Adjustments to reconcile net income to
Select an opening name for subsection                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
	$Enter a dollar amount
	Enter a dollar amount
	Enter a dollar amount
	Enter a dollar amount
		Enter a total amount for this subsection
		Enter a total amount for section one
	Enter a dollar amount
	Enter a dollar amount
		Enter a total amount for section two
	Enter a dollar amount
	Enter a dollar amount
	Enter a dollar amount
		Enter a total amount for section three
		Enter a total amount for three sections
		Enter a dollar amount
Select a closing name for this statement		$Enter a total of the two previous amounts

Answer 1

Carla Vista Company
Statement of Cash Flow
For the Year Ended December 31, 2022
Cash flows from operating activities:
Net Income		$232,500
Adjustments to reconcile net income to
Net cash provided by operating activities:
Depreciation expense	$85,000
Increase in accounts receivable	-$30,000
Decrease in inventory	$55,000
Decrease in accounts payable	-$10,000
		$100,000
Net cash provided by operating activities		$332,500
Cash Flow from Investing Activities
Sale of land	$50,000
Purchase of equipment	-$150,000
Net cash used by financing activities:		-$100,000
Cash Flow from Financing Activities
Payment to bonds payable	-$125,000
Issue of common stock	$105,000
Payment of dividend	-$97,500
Net cash used by financing activities:		-$117,500
Net increase in cash		$115,000
Cash at the beginning of the Period		$55,000
Cash at the end of the Period		$170,000