View Policies Current Attempt in Progress Presented here are the financial statements of Whispering Winds Company. Whispering Winds Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,000 $20,300 Accounts receivable 32,600 18,700 Inventory 30,100 20,700 Property, plant, and equipment 59,700 77,200 Accumulated depreciation (29,800 ) (23,300) Total $128,600 $113,600 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,000 $16,100 7,500 8,200 26,600 32,600 17,900 14,000 48,600 42,700 $128,600 $113,600 Whispering Winds Company Income Statement For the Year Ended December 31, 2022 Sales revenue $241,200 Cost of goods sold 175,400 Gross profit 65,800 Selling expenses $17,850 Whispering Winds Company Income Statement For the Year Ended December 31, 2022 Sales revenue $241,200 Cost of goods sold 175,400 Gross profit 65,800 Selling expenses $17,850 Administrative expenses 5,950 23,800 Income from operations 42,000 Interest expense 2,500 Income before income taxes 39,500 Income tax expense 7,900 Net income $31,600 Additional data: Additional data: 1. Depreciation expense was $15,200. 2. Dividends declared and paid were $25,700. 3. 4. 5. During the year equipment was sold for $8,800 cash. This equipment cost $17,500 originally and had accumulated depreciation of $8,700 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. Whispering Winds Company Statement of Cash Flows - Indirect Method 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: Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Cash Flows from Investing Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period