The following comparative balance sheets at the end of 2023 and 2022 are available for Card...

Transcribed Image Text:

The following comparative balance sheets at the end of 2023 and 2022 are available for Card Stop Inc.: Card Stop Inc. Balance Sheets December 31, 2023 & 2022 ASSETS: Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation Total Assets LIABILITIES & SHAREHOLDERS' EQUITY: 2023 2022 215,000 220,000 365,000 350,000 430,000 440,000 1,000,000 995,000 (160,000) (135,000) 1,850,000 1,870,000 Accounts payable 257,000 240,000 Other current liabilities 115,000 120,000 Long-term notes payable 705,000 750,000 Common shares 520,000 500,000 Retained earnings 253,000 260,000 Total liabilities & shareholders' equity 1,850,000 1,870,000 1,850,000 1,870,000 Total Assets LIABILITIES & SHAREHOLDERS' EQUITY: Accounts payable 257,000 240,000 Other current liabilities 115,000 120,000 Long-term notes payable 705,000 750,000 Common shares 520,000 500,000 Retained earnings 253,000 260,000 Total liabilities & shareholders' equity 1,850,000 1,870,000 Additional information: 1. Net income for the year amounted to $33,000, and cash dividends were declared and paid during 2023. 2. Card Stop's only non-cash expense was depreciation that totaled $25,000. 3. The company purchased equipment during 2023 but did not sell any plant and equipment. 4. The company issued shares for cash during 2023. 5. The company repaid $45,000 on the long-term note payable during the year. Required: Prepare the Statement of Cash Flows for Card Stop Inc. for the year ended December 31, 2023 using the indirect method for the operating cash flows. (13 marks) The following comparative balance sheets at the end of 2023 and 2022 are available for Card Stop Inc.: Card Stop Inc. Balance Sheets December 31, 2023 & 2022 ASSETS: Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation Total Assets LIABILITIES & SHAREHOLDERS' EQUITY: 2023 2022 215,000 220,000 365,000 350,000 430,000 440,000 1,000,000 995,000 (160,000) (135,000) 1,850,000 1,870,000 Accounts payable 257,000 240,000 Other current liabilities 115,000 120,000 Long-term notes payable 705,000 750,000 Common shares 520,000 500,000 Retained earnings 253,000 260,000 Total liabilities & shareholders' equity 1,850,000 1,870,000 1,850,000 1,870,000 Total Assets LIABILITIES & SHAREHOLDERS' EQUITY: Accounts payable 257,000 240,000 Other current liabilities 115,000 120,000 Long-term notes payable 705,000 750,000 Common shares 520,000 500,000 Retained earnings 253,000 260,000 Total liabilities & shareholders' equity 1,850,000 1,870,000 Additional information: 1. Net income for the year amounted to $33,000, and cash dividends were declared and paid during 2023. 2. Card Stop's only non-cash expense was depreciation that totaled $25,000. 3. The company purchased equipment during 2023 but did not sell any plant and equipment. 4. The company issued shares for cash during 2023. 5. The company repaid $45,000 on the long-term note payable during the year. Required: Prepare the Statement of Cash Flows for Card Stop Inc. for the year ended December 31, 2023 using the indirect method for the operating cash flows. (13 marks)

Answer rating: 100% (QA)

To prepare the Statement of Cash Flows for Card Stop Inc for the year ended December 31 2023 using t... View the full answer