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The balance sheet and income statement for Vespa Company are presented below.
| Vespa Company Balance Sheet As at December 31 |
| | 2023 | 2022 |
| Assets | | |
| Current Assets | | |
| Cash | $110,845 | $77,600 |
| Accounts Receivable | $42,900 | $27,600 |
| Merchandise Inventory | $80,700 | $45,800 |
| Total Current Assets | $234,445 | $151,000 |
| Land | $104,000 | $110,000 |
| Equipment | $99,000 | $135,000 |
| Less: Accumulated Depreciation | $-57,000 | $-69,000 |
| Total Assets | $380,445 | $327,000 |
| | | |
| Liabilities and Equity | | |
| Liabilities | | |
| Current Liabilities | | |
| Accounts Payable | $36,100 | $69,600 |
| Taxes Payable | $23,400 | $23,400 |
| Total Current Liabilities | $59,500 | $93,000 |
| Bonds Payable | $119,300 | $88,500 |
| Total Liabilities | $178,800 | $181,500 |
| Shareholders' Equity | | |
| Common Shares | $68,200 | $61,200 |
| Retained Earnings | $133,445 | $84,300 |
| Total Shareholders' Equity | $201,645 | $145,500 |
| Total Liabilities and Equity | $380,445 | $327,000 |
Notes: The company paid cash dividends during 2023.
The company did not make a bonds payable payment during 2023.
The company did not purchase any equipment during 2023.
The company did not purchase any land during 2023.
| Vespa Company Income Statement For the Year Ended December 31, 2023 |
| Sales | $399,000 |
| Cost of Goods Sold | $259,350 |
| Gross Profit | $139,650 |
| Operating Expenses | |
| Depreciation Expense | $6,000 |
| Other Operating Expenses | $27,500 |
| Total Operating Expenses | $33,500 |
| Income from Operations | $106,150 |
| Other Income and Expenses | |
| Interest Expense | $-6,800 |
| Loss on Sale of Equipment | $-5,400 |
| Gain on Sale of Land | $7,400 |
| Operating Income before Tax | $101,350 |
| Income Tax | $30,405 |
| Net Income (Loss) | $70,945 |
Prepare the statement of cash flows for December 31, 2023 using the indirect method.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.
| Vespa Company Statement of Cash Flows For the Year Ended December 31, 2023 |
| Cash Flow from Operating Activities | | |
| Net Income | Answer | |
| Adjustments to Reconcile Net Income to Cash | | |
| Depreciation Expense | Answer | |
| Loss on Sale of Equipment | Answer | |
| Gain on Sale of Land | Answer | |
| Changes in Operating Assets and Liabilities | | |
| Increase in Accounts Receivable | Answer | |
| Increase in Merchandise Inventory | Answer | |
| Decrease in Accounts Payable | Answer | |
| Change in Cash Due to Operating Activities | | Answer |
| | | |
| Cash Flow from Investing Activities | | |
| Sale of Equipment | Answer | |
| Sale of Land | Answer | |
| Net Cash Provided (Used) by Investing Activities | | Answer |
| | | |
| Cash Flow from Financing Activities | | |
| Proceeds from Issuance of Common Shares | Answer | |
| Proceeds from Bonds Payable | Answer | |
| Payment of Dividends | Answer | |
| Net Cash Provided (Used) by Financing Activities | | Answer |
| Net increase (decrease) in cash | | Answer |
| Cash at the Beginning of the Year | | Answer |
| Cash at the End of the Year | | Answer |
Answer & Explanation
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