Condensed financial data of Granger Inc. follow.
Granger Inc.
Comparative Balance Sheets
December 31
2022 2021
Assets
Cash $80,800 $48,400
Accounts receivable 87,800 38,000
Inventory 112,500 102,850
Prepaid expenses 28,400 26,000
Long-term investments 138,000 109,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750
Liabilities and Stockholders’ Equity
Accounts payable $102,000 $ 67,300
Accrued expenses payable 16,500 21,000
Bonds payable 110,000 146,000
Common stock 220,000 175,000
Retained earnings 234,000 105,450
Total $682,500 $514,750
Granger Inc.
Income Statement Data
For the Year Ended December 31, 2022
Sales revenue $388,460
Less:
Cost of goods sold $135,460
Operating expenses, excluding depreciation 12,410
Depreciation expense 46,500
Income tax expense 27,280
Interest expense 4,730
Loss on disposal of plant assets 7,500 233,880
Net income $154,580
Additional information:
New plant assets costing $100,000 were purchased for cash during the year.
Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
Bonds payable matured and were paid off at face value for cash.
A cash dividend of $26,030 was declared and paid during the year.
Common stock was issued at par for cash.
There were no significant noncash transactions.
Instructions
Prepare a statement of cash flows using the indirect method.
Net cash provided—oper. act.$176,930