Question

Presented below are the financial statements of Coronado Industries. Coronado Industries Comparative Balance Sheets December 31 Assets 2022 $ 49,000 2021 $28,000 Cash Accounts receivable Inventory Property, plant, and equipment 28,000 39,200 84,000 (44,800) $155,400 19,600 28,000 109,200 (33,600) $151,200 Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable $ 26,600 9,800 23,800 25,200 Bonds payable $ 21,000 11,200 46,200 19,600 53,200 $151,200 Common stock Retained earnings 70,000 Total $155,400 Coronado Industries Income Statement For the Year Ended December 31, 2022 Sales revenue $338,800 245,000 Cost of goods sold Gross profit Selling expenses 93,800 $25,200 8.400 Administrative expenses 33,600 Income from operations 60,200 Interest expense 4,200 Income before income taxes 56,000 Income tax expense 11,200 Net income $ 44,800 Additional data: 1. Depreciation expense was $24,500. 2. Dividends declared and paid were $28,000. 3. During the year equipment was sold for $11,900 cash. This equipment cost $25,200 originally and had accumulated depreciation of $13,300 at the time of sale.

Answer 1

$ 44,800 Coronado Industries Statement of Cash flows For the Year Ended December 31, 2022 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash flows from Operating activities Depreciation expenses $ 24,500 Increase in Accounts Receivables $ (8,400) Increases in Inventory $ (11,200) Increase in accounts Payable $ 5,600 Decrease in Income Taxes payable $ (1,400 Net Cash flow from operating activities Cash Flows from Investing Activities Sale of equipemnt $ 11,900 Net Cash flow from investing activities Cash Flows from Financing Activities Payment of dividends $ (28,000 Redemption of Bonds $ (22,400) Issuance of Common stock $ 5,600 Net Cash flow from financing activities Net Increase in Cash Cash at the beginning of period Cash at the end of period $ $ 9,100 53,900 $ 11,900 $ $ $ $ (44,800 21,000 28,000 49,000

Free Cash Flow $ 25,900 Amount Amount $ 53,900 Particulars Net Cash provided by operating activities Less: Capital Expenditures Dividends paid Free Cash Flow $ (28,000 $ (28,000 S 25,900