Sheridan Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheridan Company for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $407000 $ 193000 Accounts receivable 362000 214000 Inventory 382000 482000 Property, plant and equipment $609000 $960000 Less accumulated depreciation (321000 ) 288000 (306000 ) 654000 $1439000 $1543000 . Accounts payable $ 176000 $ 97000 Income taxes payable 351000 394000 Bonds payable 359000 602000 Common stock 217000 215000 Retained earnings 336000 235000 $1439000 $1543000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue $8410000 Cost of sales 7153000 Gross profit 1257000 Selling expenses $599000 Administrative expenses 194000 793000 Income from operations 464000 Interest expense 72000 Income before taxes 392000 Income taxes 98000 Net income $ 294000 The following additional data were provided: 1. Dividends for the year 2022 were $193000. 2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is

Sheridan Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheridan Company for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $407000 $ 193000 Accounts receivable 362000 214000 Inventory 382000 482000 Property, plant and equipment $609000 $960000 Less accumulated depreciation (321000 ) 288000 (306000 ) 654000 $1439000 $1543000 . Accounts payable $ 176000 $ 97000 Income taxes payable 351000 394000 Bonds payable 359000 602000 Common stock 217000 215000 Retained earnings 336000 235000 $1439000 $1543000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue $8410000 Cost of sales 7153000 Gross profit 1257000 Selling expenses $599000 Administrative expenses 194000 793000 Income from operations 464000 Interest expense 72000 Income before taxes 392000 Income taxes 98000 Net income $ 294000 The following additional data were provided: 1. Dividends for the year 2022 were $193000. 2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 33P

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BALANCE SHEETS
				12/31/22			12/31/21
	Cash			$407000			$ 193000
	Accounts receivable			362000			214000
	Inventory			382000			482000
	Property, plant and equipment	$609000			$960000
	Less accumulated depreciation	(321000	)	288000	(306000	)	654000
				$1439000			$1543000
.
	Accounts payable			$ 176000			$ 97000
	Income taxes payable			351000			394000
	Bonds payable			359000			602000
	Common stock			217000			215000
	Retained earnings			336000			235000
				$1439000			$1543000

INCOME STATEMENT For the Year Ended December 31, 2022
	Sales revenue		$8410000
	Cost of sales		7153000
	Gross profit		1257000
	Selling expenses	$599000
	Administrative expenses	194000	793000
	Income from operations		464000
	Interest expense		72000
	Income before taxes		392000
	Income taxes		98000
	Net income		$ 294000

The following additional data were provided:

	1.	Dividends for the year 2022 were $193000.
	2.	During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
	3.	All depreciation expense is in the selling expense category.

The net cash provided by operating activities is

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