Reference no: EM132317000
Question
The following information is taken from Escape Rooms Inc's financial statements:
December 20x2 December 20x1
Cash $82,000 $27,000
Accounts receivable 95,000 80,000
Allowance for doubtful accounts (4,500) (3,100)
Inventory 155,000 175,000
Prepaid Expenses 7,500 6,800
Land 88,000 60,000
Buildings 287,000 244,000
Accumulated depreciation (30,000) (13,000)
Patents 20,000 35,000
Totals: $700,000 $611,700
Accounts Payable $88,000 $84,000
Accrued liabilities 54,000 63,000
Bonds Payable 120,000 60,000
Common Stock 100,000 100,000
Retained earnings--appropriated 80,000 10,000
Treasury Stock, as cost 273,000 302, 700
Totals: $700,000 $611,700
Information for 20x2 year:
Net income $66,300
Depreciation expense 17,000
Amortization of patents 5,000
Cash dividends declared and paid 26,600
Gain or loss on sale of patents none
Create the statement of cash flows for the Pagnozzi Corporation for the year 20x2. (Use the indirect method). Assume that Land, Building, and Treasury Stock were purchased for cash, the patents were sold for $10,000 cash, and the bonds were issued at face for cash.