Case Study 1

Selected financial statement information and additional data for ABC Enterprises is presented below. Prepare a statement of cash flows for the year ending December 31, 2022

ABC Enterprises

Statement of Financial Position and Income Statement Data

December 31,December 31,

2022 2021

Property, Plant, and Equipment $ 1,241,000 $1,122,000

Less: Accumulated Depreciation (476,000) (442,000)

765,000 680,000

Current Assets:

Inventory 391,000 340,000

Accounts Receivable238,000 306,000

Cash153,000 119,000

Total Current Assets782,000 765,000

Total Assets$1,547,000 $1,445,000

Equity:

Share CapitalOrdinary $ 510,000$ 467,500

Retained Earnings374,000340,000

Total Equity 884,000 807,500

Non-Current Liabilities:

Bonds Payable340,000391,000

Current Liabilities:

Accounts Payable187,000102,000

Notes Payable51,00068,000

Income Taxes Payable 85,000 76,500

Total Current Liabilities323,000246,500

Total Liabilities663,000637,500

Total Liabilities & Equity$1,547,000 $1,445,000

Sales Revenue$1,615,000 $1,513,000

Less Cost of Goods Sold731,000 731,000

Gross Profit884,000 782,000

Expenses:

Depreciation Expense153,000136,000

Salaries and Wages Expense391,000357,000

Interest Expense34,00034,000

Loss on Sale of Equipment 17,000 0

Income Before Taxes289,000255,000

Less Income Tax Expense 119,000 102,000

Net Income$ 170,000$ 153,000

Additional Information:

During the year, ABC sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000.