A comparative balance sheet for Stokely, Inc., on December 31, 2022 and 2021, follows. Additional information about

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A comparative balance sheet for Stokely, Inc., on December 31, 2022 and 2021, follows. Additional information about the firm’s financial activities during 2022 is also given below.


INSTRUCTIONS
Prepare a statement of cash flows for 2022. Additional information for the year follows:
a. Had net income of $100,000.
b. Recorded $20,000 in depreciation.
c. Issued bonds payable with a par value of $50,000 at par and received cash.
d. Received $30,000 in cash for the issue of an additional 30,000 shares of $1 par value common stock.
e. Purchased equipment for $50,000 in cash.

Analyze: Explain why a decrease in accounts payable is considered an adjustment to cash flows from operating activities.

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College Accounting Chapters 1-30

ISBN: 9781260247909

16th Edition

Authors: David Haddock, John Price, Michael Farina

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