REQUIRED

In proper format, prepater a statement of cash flows, using the indirect method to

present cash flows for the year ending December $31,2022.$

$($Hint; You will have to calculate the dividend payments$)$

Surf USA

Income Statement

For the Year Ended December $31,2022$

$($$ in thousands$)$

Sales Revenue $6,849$

Operating Expenses:

Cost of Goods Sold $3,360$

Depreciation Expense $240$

Insurance Expense $100$

General & Administrative Expense $1,800$

Total Operating Expenses $5,500$

Income before Income Taxes $1,349$

Income Taxes Expense $600$

Net Income $749$

Surf USA

Balance Sheets

$($$ in thousands$)$

Dec $31,2022$ Dec $31,2021$

Assets

Cash $405200$

Accounts Receivable $750830$

Inventory $640600$

Prepaid Insurance $5020$

Equipment $2,1001,800$

Less Accumulated Depreciation $(840)(600)$

Total Assets $3,1052,850$

Liabilitieis and Shareholders' Equity:

Accounts Payable $300360$

Accrued Liabilities $($for G&A Ex$)300400$

Income Taxes Payable $200150$

Notes Payable $($due $12/31/2024)800600$

Common Stock $900800$

Retained Earnings $605540$

Total Liabilities and Shareholders' Equity $3,1052,850$

Surf USA

Cash Flow Statement

For the Year Ended December $31,2022$REQUIRED

In proper format, prepater a statement of cash flows, using the indirect method to

present cash flows for the year ending December $31,2022.$

$($Hint; You will have to calculate the dividend payments$)$

Surf USA

Income Statement

For the Year Ended December $31,2022$

$($$ in thousands$)$

Sales Revenue $6,849$

Operating Expenses:

Cost of Goods Sold $3,360$

Depreciation Expense $240$

Insurance Expense $100$

General & Administrative Expense $1,800$

Total Operating Expenses $5,500$

Income before Income Taxes $1,349$

Income Taxes Expense $600$

Net Income $749$

Surf USA

Balance Sheets

$($$ in thousands$)$

Dec $31,2022$ Dec $31,2021$

Assets

Cash $405200$

Accounts Receivable $750830$

Inventory $640600$

Prepaid Insurance $5020$

Equipment $2,1001,800$

Less Accumulated Depreciation $(840)(600)$

Total Assets $3,1052,850$

Liabilitieis and Shareholders' Equity:

Accounts Payable $300360$

Accrued Liabilities $($for G&A Ex$)300400$

Income Taxes Payable $200150$

Notes Payable $($due $12/31/2024)800600$

Common Stock $900800$

Retained Earnings $605540$

Total Liabilities and Shareholders' Equity $3,1052,850$

Surf USA

Cash Flow Statement

For the Year Ended December $31,2022$