Question

Re System Announcements RESOURCES omework 07A -02A -03 $556,600 402,500 154,100 Tamarisk Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $41,400 Administrative expenses 13,800 Income from operations Interest expense Income before income taxes Income tax expense oice pice 36 55,200 98,900 6,900 92,000 18,400 $ 73,600 Its by Study Net income Additional data: 1. Depreciation expense was $40,250. 2. Dividends declared and paid were $46,000. 3. During the year equipment was sold for $19,550 cash. This equipment cost $41,400 originally and ha Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flor Tamarisk Company Statement of Cash Flows Adjustments to reconcile net income to Type here to search

Answer 1

Tamarisk company
Statement of cash flows (Indirect Method)
For year ended December 31, 2022
A. Cash Flows from Operating Activity
Net Income		$ 73,600
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense	$ 40,250
Changes in Current operating assets and liabilities
Increase in Accounts receivables	$-13,800
Decrease in income tax payable	$ -2,300
Decrease in Inventories	$-18,400
Decrease in Accounts Payable	$   9,200
		$ 14,950
Net cash flow from Operating activities		$ 88,550
B. Cash flows from Investing Activities
Sale of Sale of equipment	$ 19,550
Net Cash flows from Investing activities		$ 19,550
C. Cash Flows from Financing activities
Issuance of Common Stock (41400-32200)	$   9,200
Payments of dividends	$-46,000
Redemption of Bonds (75900-39100)	$-36,800
Cash flows from Financing activities		$-73,600
Net Increase (Decrease) in Cash [A+B+C]		$ 34,500
Cash at the beginning		$ 46,000
Cash at the end		$ 80,500