GRI Inc.'s comparative statements of financial position are presented below. Each fiscal year ends on December...

   

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GRI Inc.'s comparative statements of financial position are presented below. Each fiscal year ends on December 31. Land Equipment Accumulated depreciation Accounts receivable Cash Total Share capital ordinary ($10 par/share) Retained earnings Accounts payable Total 2022 $20,000 131,000 (12,000) 20,000 18,000 $177,000 $119,000 22,000 36,000 $177,000 2021 $26,000 70,000 (10,000) 23,000 11,000 $120,000 $72,000 20,000 28,000 $120,000 Additional information: (1) For 2022, net income was $52,000. (2) Land was sold for $7,000 cash during 2022. No land was purchased during the year. (3) On May 1, equipment with a book value of $7,000 (cost $12,000, less accumulated depreciation $5,000) was sold for $4,000 cash. (4) During 2022, cash dividends declared and paid were $14,000. (5) A 50% share dividend was declared and issued on July 31, 2022, when the fair value was $22 per share. (6) On September 30, new ordinary shares were issued at par value for cash. (Hint: You need to compute the amount here.) (7) All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. Required: Prepare a statement of cash flows for 2022 using the indirect method. That is, fill in the missing items and numbers in the statement provided on the next page. Notes: - Provide amounts of cash outflows (i.e., decreases in cash) in parentheses. - Do not report noncash transactions. Question 7 (continued) GRI INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash flows from operating activities Net income.... Adjustments to reconcile net income to net cash provided by operating activities: $ 52,000 Net cash provided (used) by operating activities......... Cash flows from investing activities Net cash provided (used) by investing activities....... Cash flows from financing activities Net cash provided (used) by financing activities..... Net increase (decrease) in cash Cash at beginning of period. Cash at end of period.... $18,000 GRI Inc.'s comparative statements of financial position are presented below. Each fiscal year ends on December 31. Land Equipment Accumulated depreciation Accounts receivable Cash Total Share capital ordinary ($10 par/share) Retained earnings Accounts payable Total 2022 $20,000 131,000 (12,000) 20,000 18,000 $177,000 $119,000 22,000 36,000 $177,000 2021 $26,000 70,000 (10,000) 23,000 11,000 $120,000 $72,000 20,000 28,000 $120,000 Additional information: (1) For 2022, net income was $52,000. (2) Land was sold for $7,000 cash during 2022. No land was purchased during the year. (3) On May 1, equipment with a book value of $7,000 (cost $12,000, less accumulated depreciation $5,000) was sold for $4,000 cash. (4) During 2022, cash dividends declared and paid were $14,000. (5) A 50% share dividend was declared and issued on July 31, 2022, when the fair value was $22 per share. (6) On September 30, new ordinary shares were issued at par value for cash. (Hint: You need to compute the amount here.) (7) All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. Required: Prepare a statement of cash flows for 2022 using the indirect method. That is, fill in the missing items and numbers in the statement provided on the next page. Notes: - Provide amounts of cash outflows (i.e., decreases in cash) in parentheses. - Do not report noncash transactions. Question 7 (continued) GRI INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash flows from operating activities Net income.... Adjustments to reconcile net income to net cash provided by operating activities: $ 52,000 Net cash provided (used) by operating activities......... Cash flows from investing activities Net cash provided (used) by investing activities....... Cash flows from financing activities Net cash provided (used) by financing activities..... Net increase (decrease) in cash Cash at beginning of period. Cash at end of period.... $18,000

Answer rating: 100% (QA)

Cash flows from operating activities Net cash provided used by operating activities Net incomeAdjust... View the full answer