Shown below are comparative ba

Shown below are comparative balance sheets for PearlIndustries.

Pearl IndustriesComparative Balance SheetsDecember 31

Assets

2022

2021

Cash

$ 190,400

$ 61,600

Accounts receivable

246,400

212,800

Inventory

467,600

529,200

Land

224,000

280,000

Equipment

728,000

560,000

Accumulated depreciation—equipment

(184,800

)

(89,600

)

Total

$1,671,600

$1,554,000

Liabilities and Stockholders’ Equity

Accounts payable

$ 109,200

$ 120,400

Bonds payable

420,000

560,000

Common stock ($1 par)

604,800

487,200

Retained earnings

537,600

386,400

Total

$1,671,600

$1,554,000

Additional information:

1. Net income for 2022 was $260,400.
2. Depreciation expense was $95,200.
3. Cash dividends of $109,200 were declared and paid.
4. Bonds payable amounting to $140,000 were redeemed for cash$140,000.
5. Common stock was issued for $117,600 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 indirectmethod. (Show amounts that decrease cash flow witheither a – sign e.g. -45,000, or in parenthesis e.g.(45,000)).

Answer:

Solution:

PEARLINDUSTRIES
Statement of Cash Flows[Indirect Method]
For Current Year EndedDecember 31, 2022
Cash flows from operatingactivities:
Net Income $    260,400
Adjustments to reconcile net income tonet cash provided by operating:
Depreciation expense $      95,200
Changes in current operating assetsand liabilities:
Increase in Account Receivable[212800-246400] $    (33,600)
Decrease in Inventory[529200-467600] $      61,600
Decrease in accounts payable[109200-120400] $    (11,200)
     Net cash flows from operating activities $    372,400
Cash flow from[used for] investingactivities:
Cash from sale of land[280000-224000] $      56,000
Cash used for purchase of equipment[560000-728000] $ (168,000)
Net cash flow from investingactivities (B) $   (112,000)
Cash flow from [used for] financingactivities:
Cash from sale of commonstock $    117,600
Cash used for payment ofbonds $ (140,000)
Cash used for dividends $ (109,200)
Net Cash flow from financingactivities (C ) $   (131,600)
Net Increase in cashflow $    128,800
Cash balance at December 31,2021 $       61,600
Cash balance at December 31,2022 $    190,400

 
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes