Question

Presented below are the financial statements of Tamarisk Company. Tamarisk Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 80,500 $ 46,000 Accounts receivable 46,000 32,200 Inventory 64,400 46,000 Property, plant, and equipment 138,000 179,400 Accumulated depreciation (73,600 ) (55,200 ) Total $255,300 $248,400 Liabilities and Stockholders’ Equity Accounts payable $ 43,700 $ 34,500 Income taxes payable 16,100 18,400 Bonds payable 39,100 75,900 Common stock 41,400 32,200 Retained earnings 115,000 87,400 Total $255,300 $248,400 Tamarisk Company Income Statement For the Year Ended December 31, 2022 Sales revenue $556,600 Cost of goods sold 402,500 Gross profit 154,100 Selling expenses $41,400 Administrative expenses 13,800 55,200 Income from operations 98,900 Interest expense 6,900 Income before income taxes 92,000 Income tax expense 18,400 Net income $ 73,600 Additional data: 1. Depreciation expense was $40,250. 2. Dividends declared and paid were $46,000. 3. During the year equipment was sold for $19,550 cash. This equipment cost $41,400 originally and had accumulated depreciation of $21,850 at the time of sale.

Answer 1

Answer:

Please see the Statement of Cash Flow for Tamarisk Company as of December 31, 2022 below:

Explanation:

Tamarisk Company      

Statement of Cash Flow      

As of December 31, 2022      

     

CASH FLOWS FROM OPERATING ACTIVITIES     $

Net Income      73,600

Adjustments to reconcile net income to      

net cash provided by operating activities:      

Depreciation on Fixed Assets      40,250  

(Increase) Decrease in Current Assets:      

Accounts Receivables      (13,800)

Merchandise Inventory      (18,400)      

Increase (Decrease) in Current Liabilities:      

Accounts Payable      9,200  

Income taxes payable      (2,300)

NET CASH PROVIDED BY OPERATING ACTIVITIES   88,550  

     

CASH FLOWS FROM INVESTING ACTIVITIES      

Sale of Equipment      19,550        

NET CASH USED IN INVESTING ACTIVITIES     19,550

     

CASH FLOWS FROM FINANCING ACTIVITIES            

Payment of Cash Dividends      (46,000)

Issuance of Common Stock      9,200  

Bonds Payable      (36,800)

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES  (73,600)

NET INCREASE (DECREASE) IN CASH     34,500

Cash Balance, December 31 2016      46,000  

Cash Balance, December 31 2017      80,500