Instructions 

(a) From the information, prepare a statement of cash flows (indirect method) for Santos, Inc. for the year ended December 31, 2023. 

(b) From the information above, prepare a schedule of cash provided by operating activities using the direct method

  

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Cash Accounts Receivable Allowance for Doubtful Amounts Prepaid expenses Inventories Land Buildings Accumulated Depreciation - buildings Equipment Accumulated depreciation - delivery equ Patents Total Assets Accounts payable Accrued liabilities Mortgage payable Bonds payable Premium on Bonds Common Stock ($1PV) Additional paid-in capital Retained earnings Less: Treasury Stock Total Liabilities and Owners' Equity Dec. 31, 2023 78,500 84,200 The income statement for 2023 is as follows: Sales Cost of sales Gross profit Operating expenses Other income(expense) Net income (6,200) 5,300 70,500 150,000 690,000 (151,700) 535,000 (129,000) 14,000 1,340,600 60,000 9,240 97,360 400,000 (8,500) 55,000 222,500 537,000 (35,000) 1,337,600 Dec. 31, 2022 24,000 67,600 (4,700) 5,800 58,800 150,000 690,000 (130,000) 420,000 (227,000) 25,000 1,079,500 68,900 14,600 285,000 0 0 50,000 172,500 488,500 1,079,500 2,728,500 (2.498,000) 230,500 (173,500) (2,500) 54,500 Cash Accounts Receivable Allowance for Doubtful Amounts Prepaid expenses Inventories Land Buildings Accumulated Depreciation - buildings Equipment Accumulated depreciation - delivery equ Patents Total Assets Accounts payable Accrued liabilities Mortgage payable Bonds payable Premium on Bonds Common Stock ($1PV) Additional paid-in capital Retained earnings Less: Treasury Stock Total Liabilities and Owners' Equity Dec. 31, 2023 78,500 84,200 The income statement for 2023 is as follows: Sales Cost of sales Gross profit Operating expenses Other income(expense) Net income (6,200) 5,300 70,500 150,000 690,000 (151,700) 535,000 (129,000) 14,000 1,340,600 60,000 9,240 97,360 400,000 (8,500) 55,000 222,500 537,000 (35,000) 1,337,600 Dec. 31, 2022 24,000 67,600 (4,700) 5,800 58,800 150,000 690,000 (130,000) 420,000 (227,000) 25,000 1,079,500 68,900 14,600 285,000 0 0 50,000 172,500 488,500 1,079,500 2,728,500 (2.498,000) 230,500 (173,500) (2,500) 54,500

Answer rating: 100% (QA)

SOLUTION a Statement of Cash Flows Indirect Method for Santos Inc for the year ended December 31 2023 Santos Inc Statement of Cash Flows For the Year Ended December 31 2023 Operating Activities Net in... View the full answer