Using the information provided in E22-15, prepare Cuthbert’s current- year statement of cash flows under the direct reporting format.

In E22-15

Cuthbert Cookware Distributors, Inc. is a wholesale distributor of brand- name cookware products. The company’s current- year comparative balance sheets and income statement are presented below.

                Cuthbert Cookware Distributors, Inc.

                                Income Statement

                    For the Year Ended December 31

                                    Current Year

Sales Revenue………………………………………  $ 2,800,000

Cost of Goods Sold………………………………...  (1,875,000)

Selling, General, and Administrative Expenses…….  (885,000)

Depreciation Expense 0 Bad Debt Expense………..              (10,000)

Loss on Sale of Investments……………………….. (37,500)

Interest Expense – net………………………………  (5,000)

Loss before Tax…………………………………….. $ (12,500)

Tax at 40% 0 Net Loss……………………………... $ (12,500)

Cuthbert Cookware Distributors, Inc. Balance Sheets At December 31 Assets Current Year Prior Year Current Assets S 107500 600,000 525,000 1.125,000 $1.982,500 2,250,000 Accounts Receivable net Inventory 975,000 900,000 Total Current Assets NoncurrentAssets Investments Held to Maturity Total Assets 0 300,000 $1,982 500 $2.550,000 Liabilities Current Liabilities Accrued Liabilities Accounts Payable 375,000 600,000 393 300 21/390 $ 769.300 S 817350 Total Current Liabilities Noncurrent Liabilities Notes Payable 350,000 S500,000 S 350,000 500,000 S1,118,300 $1,317,350 Total Noncurrent Liabilities Total Liabilities Shareholders' Equity Common Stock, no par value Retained Earnings Total Shareholders' Equity Less: Treasury Stock at Cost Total Liabilities and Shareholders' Equity S 625,000 625,000 512,500750,000 $ 1,137500 $1375,000 273300 142350 $1,982,500 $2,550,000