Comparative statements of financial position for University Inc. appear below: University INC. Comparative Statements of Financial Position ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Assets Dec. 31, 2022 Dec. 31, 2021 Cash..................................................................................... $ 29,000 $10,000 Accounts receivable............................................................. 28,000 19,000 Prepaid expenses................................................................ 9,000 12,000 Inventory............................................................................... 37,000 54,000 Long-term investments........................................................ 0 53,000 Equipment............................................................................ 110,000 48,000 Accumulated depreciation—equipment............................... (26,000) (22,000) Total assets................................................................... $187,000 $174,000 Liabilities and Shareholders' Equity Accounts payable................................................................. $ 21,000 $ 9,000 Mortgage payable................................................................ 37,000 45,000 Common shares................................................................... 40,000 23,000 Retained earnings................................................................ 89,000 97,000 Total liabilities and shareholders' equity....................... $187,000 $174,000 Additional information regarding fiscal 2022: 1. Net income for the year was $27,000. 2. Cash dividends of $35,000 were declared and paid during the year. 3. Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash. Instructions Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2022.
Comparative
University INC.
Comparative Statements of Financial Position
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Assets
Dec. 31, 2022 Dec. 31, 2021
Cash..................................................................................... $ 29,000 $10,000
Prepaid expenses................................................................ 9,000 12,000
Inventory............................................................................... 37,000 54,000
Long-term investments........................................................ 0 53,000
Equipment............................................................................ 110,000 48,000
Total assets................................................................... $187,000 $174,000
Liabilities and Shareholders' Equity
Accounts payable................................................................. $ 21,000 $ 9,000
Mortgage payable................................................................ 37,000 45,000
Common shares................................................................... 40,000 23,000
Total liabilities and shareholders' equity....................... $187,000 $174,000
Additional information regarding fiscal 2022:
1. Net income for the year was $27,000.
2. Cash dividends of $35,000 were declared and paid during the year.
3. Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash.
Instructions
Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2022.
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