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Statement of cash flows

Use the information shown on this page and the next to prepare a Statement of Cash Flows (Indirect Method) for the year ending December 31, 2022. Your Statement of Cash Flows should be in good form and should be complete in all respects. For example, all required items should be included and appropriately labeled and line items should be correctly classified (for example, operating items should be separated from investing and financing items). Ignore tax effects. Impairment charges (if any) should be displayed separately from depreciation (if any) and amortization (if any), each of these three items should be displayed separately. Use parentheses ( ) to indicate items that reduce cash flows; for example, (31) indicates a cash flow reduction, or use of cash, of 31.

Balance Sheets as of December 31, 2022 and December 31, 2021

Assets Dec. 31, 2022 Dec. 31, 2021

Cash 830 849

Accounts receivable, net 358 400

Inventory,net 407 389

Marketable securities (trading) 56 36

Marketable debt securities (available for sale) 442 420

Building and Equipment at cost 1630 1470

Less: Accum. Depreciation (519) (460)

Land 159 160

Technology (intangible asset) at cost -- 600

Less: Accum. Amortization -- (240)

Total Assets 3363 3624

Liabilities and Shareholders’ Equity

Accounts payable 290 245

Other current liabilities 370 505

Restructuring accrual (current liability) 410 325

Long term bonds payable 500 1035

Common stock 650 610

Retained earnings 1121 904

Accumulated other

comprehensive income (loss) 22 __ -___

Total Liabilities and Shareholders’ Equity 3363 3624

Notes and supplemental information (continued on the next page)

  1. During 2022, the firm did not repurchase any common stock. The firm issued its common stock in exchange for cash; the amount is 30.
  2. During 2022, the firm also issued its common stock in exchange for land. This was the only transaction in 2022 in which the firm acquired land. The firm did not record an impairment of land. The firm also sold land for cash, for an amount equal to the book value (balance sheet carrying value) of the land.
  3. The firm credits impairment losses to Accumulated Depreciation or Accumulated Amortization.
  4. During 2021 and 2022, the firm’s only intangible asset is a Technology asset acquired on January 1, 2018. The Technology intangible asset has a 10-year service life and zero salvage value. The firm sold the Technology intangible asset for cash on June 30, 2022 immediately after closing the books for the second quarter of 2022. The firm has never recorded an impairment loss on its Technology asset.
  5. At various times during 2022, the firm repaid some of its long-term bonds using cash; the amount is 580. In January 2022 the firm issued long term bonds for cash.
  6. During 2022, the firm acquired Buildings and Equipment for a total cost of 615 paid in cash, and sold a building for cash proceeds of 180.
  7. Accounts receivable are shown net of an allowance for uncollectible accounts. During 2022, the firm wrote off uncollectible Accounts Receivable, Gross of 36 and did not collect any previously written-off Accounts Receivable.
  8. Restructuring expense for 2022 is 116; this expense is included in Selling, general and administrative expense. The firm settles its restructuring obligations by paying cash and includes the obligations it has not yet settled (Restructuring accrual) in its current liabilities. The firm did not make any changes in estimates related to its Restructuring accrual during 2022.
  9. The firm did not buy or sell any marketable securities during 2022. Trading securities are a current asset, classified as a working capital operating asset for SCF purposes. Available for sale debt securities are a noncurrent asset.
  10. The firm closes its books quarterly and annually.

Partial income statement for year ending December 31, 2022

Sales revenue 14524

Cost of sales (12949)

Gross margin 1575

Selling, general and administrative expense (902)

Depreciation expense ?

Amortization expense (Technology) ?

Gain (loss) on sale of Technology 54

Gain (loss) on sale of building (75)

Change in fair value of trading securities _ ?___

Net income (loss) 383

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