Question

Condensed financial data of Coronado Industries follow.

Coronado Industries Comparative Balance Sheets December 31
Assets		2022			2021
Cash		$ 105,040			$ 62,920
Accounts receivable		114,140			49,400
Inventory		146,250			133,705
Prepaid expenses		36,920			33,800
Long-term investments		179,400			141,700
Plant assets		370,500			315,250
Accumulated depreciation		(65,000	)		(67,600	)
Total		$887,250			$669,175
Liabilities and Stockholders’ Equity
Accounts payable		$ 132,600			$ 87,490
Accrued expenses payable		21,450			27,300
Bonds payable		143,000			189,800
Common stock		286,000			227,500
Retained earnings		304,200			137,085
Total		$887,250			$669,175

Coronado Industries Income Statement Data For the Year Ended December 31, 2022
Sales revenue				$504,998
Less:
Cost of goods sold		$176,098
Operating expenses, excluding depreciation		16,133
Depreciation expense		60,450
Income tax expense		35,464
Interest expense		6,149
Loss on disposal of plant assets		9,750		304,044
Net income				$ 200,954

Additional information:

1.		New plant assets costing $130,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $74,750 and accumulated depreciation of $63,050 were sold for $1,950 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $33,839 was declared and paid during the year.

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