| Prepare statement of cash flows using the indirect method the year 2022. | ||
| Libby Inc. | ||
| Income statement | ||
| For the year ended on December 31, 2022 | ||
| Sales | $100,000 | |
| Cost of Goods Sold | $61,000 | |
| Depreciation | 5,000 | |
| Loss on sale of land | 1,000 | |
| Supplies Expense | 8,000 | |
| Salaries Expense | 10,000 | |
| Income Tax Expense | 3,000 | |
| Total Expense | $88,000 | |
| Net income | 12,000 | |
| Libby Inc. | ||
| Balance Sheet | ||
| December 31 | ||
| 2022 | 2021 | |
| Asset | ||
| Cash | $44,000 | $18,000 |
| Accounts Receivable | 27,000 | 29,000 |
| Inventory | 30,000 | 36,000 |
| Land | 50,000 | 65,000 |
| Equipment | 60,000 | 37,000 |
| Buildings | 100,000 | 0 |
| Less Accumulated Depreciation | (35,000) | (30,000) |
| Total Assets | 276,000 | 155,000 |
| Accounts Payable | $25,000 | $22,000 |
| Salaries Payable | 800 | 1,000 |
| Notes Payable, Long Term | 138,000 | 48,000 |
| Common Stock | 80,000 | 60,000 |
| Retained Earnings | 32,200 | 24,000 |
| Total Liab. and SE. | 276,000 | 155,000 |
Additional Information |
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1. Bought equipment for cash, $23,000. | |||
2. Sold Land costing $15,000 only for $14,000 with loss on sale of land $1,000 | |||
3. Paid $10,000 on long term note payable. | |||
4. Issue new shares of common stock for $20,000. | |||
5. Declared and paid a $3,800 dividend in cash. 6. Purchased a building by signing a notes payable for $100,000
Investing activities Financing activities Non-cash activities |