Question

The following information is available for Sage Hill Corporation for the year ended December 31, 2022. Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Sales revenue Cash dividends paid Income tax payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds $42,000 3,200 81,000 10,000 12,600 274,000 42,000 747,000 10,300 4,100 145,000 36,700 261,000 Prepare a statement of cash flows using the indirect method.

(Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)

Answer 1

See the explanation below.

Step-by-step explanation:

Sage Hill Corporation

Cash Flow Statement

for the year ended December 31, 2022

Details $ $

Net income 274,000

Income tax payable increase 4,100

Accounts payable decrease (3,200)

Depreciation expense 81,000

Accounts receivable increase (10,000)

Inventory increase (12,600)

Cash generated from operations 333,300

Income tax payable increase (4,100)

Net cash from operating activities 329,00

Cash flows from investing activities:

Cash from land sale at book value 42,000

Cash used to purchase building (145,000)

Net cash flows from Investing activities (103,000)

Cash flows from financing activities:

Cash dividends paid (10,300)

Cash used to purchase treasury stock (36,700)

Cash received from issuing bonds 261,000

Net cash from financing activities 214,000

Increase / (Decrease) in cash 440,200

Beginning cash balance 42,000

Ending cash balance 482,200