hown below are comparative balance sheets for Blue Spruce Company. Blue Spruce Company Comparative Balance Sheets...

hown below are comparative balance sheets for Blue Spruce Company.

Blue Spruce Company Comparative Balance Sheets December 31
Assets	2022		2021
Cash	$ 88,400		$ 28,600
Accounts receivable	114,400		98,800
Inventory	217,100		245,700
Land	104,000		130,000
Equipment	338,000		260,000
Accumulated depreciation—equipment	(85,800	)	(41,600	)
Total	$776,100		$721,500
Liabilities and Stockholders’ Equity
Accounts payable	$ 50,700		$ 55,900
Bonds payable	195,000		260,000
Common stock ($1 par)	280,800		226,200
Retained earnings	249,600		179,400
Total	$776,100		$721,500

Additional information:

1.		Net income for 2022 was $120,900.
2.		Depreciation expense was $44,200.
3.		Cash dividends of $50,700 were declared and paid.
4.		Bonds payable amounting to $65,000 were redeemed for cash $65,000.
5.		Common stock was issued for $54,600 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)).

Solutions

Expert Solution

Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities:
Net income		120900
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	44200
Increase in Accounts receivable	-15600
Decrease in inventory	28600
Decrease in accounts payable	-5200
		52000
Net cash provided by operating activities		172900
Cash Flows from Investing Activities:
Purchase of Equipment	-78000
Sale of Land	26000
Net Cash used by Investing Activities		-52000
Cash Flows from Financing Activities
Payment of Cash Dividends	-50700
Redemption of Bonds Payable	-65000
Issuance of Common Stock	54600
Net Cash Used by Financing Activities		-61100
Net Increase in Cash		59800
Cash at Beginning of Period		28600
Cash at End of Period		88400

ekkarill92 answered 9 months ago

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