Question: Please help fix my errors and fill in any blanks while also using the provided vocab SARASOTA INC. Statement of Cash Flows - Indirect Method


Please help fix my errors and fill in any blanks while also using the provided vocab







SARASOTA INC. Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income $355534 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 106950 Loss on Disposal of Plant Assets 17250 Increase in Accounts Receivable 114540 Increase in Inventory 22195 Increase in Prepaid Expenses 5520 Increase in Accounts Payable 79810 Increase in Accounts Payable 79810 Decrease in Accrued Expenses Payable 10350 Net Cash Provided by Operating Activities 406939 Cash Flows from Investing Activities Sale of Plant Assets Purchase of Plant Assets Net Cash Used by Investing Activities Cash Flows from Financing Activities 3450 230000 66700 293250 Issuance of Common Stock 3450 \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} Sarasota Inc. \\ Comparative Balance Sheets \\ December 31 \end{tabular}} \\ \hline & 2025 & 2024 \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & $185,840 & $111,320 \\ \hline Accounts receivable & 201,940 & 87,400 \\ \hline Inventory & 258,750 & 236,555 \\ \hline Prepaid expenses & 65,320 & 59,800 \\ \hline Long-term investments & 317,400 & 250,700 \\ \hline Plant assets & 655,500 & 557,750 \\ \hline Accumulated depreciation & (115,000) & (119,600) \\ \hline Total & $1,569,750 & $1,183,925 \\ \hline \multicolumn{3}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline Accounts payable & $234,600 & $154,790 \\ \hline Accrued expenses payable & 37,950 & 48,300 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline Accounts payable & $234,600 & $154,790 \\ \hline Accrued expenses payable & 37,950 & 48,300 \\ \hline Bonds payable & 253,000 & 335,800 \\ \hline Common stock & 506,000 & 402,500 \\ \hline Retained earnings & 538,200 & 242,535 \\ \hline Total & $1,569,750 & $1,183,925 \\ \hline \end{tabular} Sarasota Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $893,458 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income $311,558 28,543 106,950 62,744 10,879 17,250 537,924 $355,534 SARASOTA INC. Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income $355534 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 106950 Loss on Disposal of Plant Assets 17250 Increase in Accounts Receivable 114540 Increase in Inventory 22195 Increase in Prepaid Expenses 5520 Increase in Accounts Payable 79810 Increase in Accounts Payable 79810 Decrease in Accrued Expenses Payable 10350 Net Cash Provided by Operating Activities 406939 Cash Flows from Investing Activities Sale of Plant Assets Purchase of Plant Assets Net Cash Used by Investing Activities Cash Flows from Financing Activities 3450 230000 66700 293250 Issuance of Common Stock 3450 \begin{tabular}{|c|c|c|} \hline Purchase of Plant Assets & -230000 & \\ \hline & -66700 & \\ \hline Decrease in Accounts Payable & & \\ \hline Decrease in Accounts Receivable & & -293250 \\ \hline Decrease in Accrued Expenses Payable & & \\ \hline Decrease in Inventory & & \\ \hline Decrease in Prepaid Expenses & & \\ \hline Depreciation Expense & & \\ \hline Gain on Disposal of Plant Assets & & \\ \hline Increase in Accounts Payable & 3450 & \\ \hline Increase in Accounts Receivable & & \\ \hline Increase in Accrued Expenses Payable & -230000 & \\ \hline Increase in Inventory & & \\ \hline Increase in Prepaid Expenses & -66700 & \\ \hline Issuance of Common Stock & & \\ \hline Loss on Disposal of Plant Assets & & \\ \hline Net Income & & -293250 \\ \hline Payment of Cash Dividends & & \\ \hline Purchase of Investments & & \\ \hline Purchase of Plant Assets & & 103500 \\ \hline Purchase of Treasury Stock & & \\ \hline Redemption of Bonds & & -59869 \\ \hline Sale of Plant Assets & & \\ \hline \end{tabular} Net Cash Used by Financing Activities \begin{tabular}{|r|r|} \hline-293250 \\ \hline \end{tabular} Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities 103500 Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Attempts: 1 of 3 used Submit Answer Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash
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