Sweet Inc. reported the following information at the end of its 2022 fiscal year. Sweet Inc....

  

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Sweet Inc. reported the following information at the end of its 2022 fiscal year. Sweet Inc. Statement of Financial Position As at April 30 Assets Cash Accounts receivable Inventory Prepaid operating expenses Long term investments Equipment Less: Accumulated depreciation 2023 $205,000 114,000 108,000 20,000 184,000 1,235,000 2022 $150,000 96,000 245,000 13,000 86,000 1,141,000 (369,000) $1,497,000 $1,356,000 (375,000) Liabilities and Shareholders' Equity Accounts payable Income tax payable Bonds payable Common shares Retained earnings $53,000 $65,000 29,000 25,000 665,000 765,000 324,000 252,000 426,000 249,000 $1,497,000 $1,356,000 Sweet Inc. Income Statement For the year ended April 30, 2023 Sales revenue Cost of goods sold Gross profit Operating expenses $1,142,000 699,000 443,000 223,000 Income from operations Interest expense Gain on disposal of equipment Income before income tax Income tax expense Net income 220,000 . 4,400 3,300 218,900 17,760 $201.140 ADDITIONAL INFORMATION: Depreciation expense is included in "operating expenses." All accounts payable transactions were related to the purchase of inventory. During the year, a piece of equipment that originally cost $51,000 was sold for cash. The equipment was 70% depreciated at the time of the sale. Long-term investments were purchased for cash during the year. Prepare a statement of cash flows, in good form, for Sweet Inc., using the indirect method and follows ASPE (Show amounts that decrease cash flow with either a negative sign eg-15,000 or in parenthesis eg. (15,000)) Sweet Inc. reported the following information at the end of its 2022 fiscal year. Sweet Inc. Statement of Financial Position As at April 30 Assets Cash Accounts receivable Inventory Prepaid operating expenses Long term investments Equipment Less: Accumulated depreciation 2023 $205,000 114,000 108,000 20,000 184,000 1,235,000 2022 $150,000 96,000 245,000 13,000 86,000 1,141,000 (369,000) $1,497,000 $1,356,000 (375,000) Liabilities and Shareholders' Equity Accounts payable Income tax payable Bonds payable Common shares Retained earnings $53,000 $65,000 29,000 25,000 665,000 765,000 324,000 252,000 426,000 249,000 $1,497,000 $1,356,000 Sweet Inc. Income Statement For the year ended April 30, 2023 Sales revenue Cost of goods sold Gross profit Operating expenses $1,142,000 699,000 443,000 223,000 Income from operations Interest expense Gain on disposal of equipment Income before income tax Income tax expense Net income 220,000 . 4,400 3,300 218,900 17,760 $201.140 ADDITIONAL INFORMATION: Depreciation expense is included in "operating expenses." All accounts payable transactions were related to the purchase of inventory. During the year, a piece of equipment that originally cost $51,000 was sold for cash. The equipment was 70% depreciated at the time of the sale. Long-term investments were purchased for cash during the year. Prepare a statement of cash flows, in good form, for Sweet Inc., using the indirect method and follows ASPE (Show amounts that decrease cash flow with either a negative sign eg-15,000 or in parenthesis eg. (15,000))

Answer rating: 100% (QA)

To prepare the statement of cash flows for Sweet Inc using the indirect method we need to analyze the changes in the balance sheet accounts and the ad... View the full answer