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Condensed financial data of Granger Inc. follow. Granger Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation $ 80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 $ 48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 102,000 16,500 110,000 220,000 234,000 $682,500 $ 67,300 21,000 146,000 175,000 105,450 $514,750 Granger Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $388,460 $135,460 12,410 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income 46,500 27,280 4,730 7,500 233,880 $ 154,580 Additional information: 1. 2. 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. 3. 4. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e g. -15,000 or in parenthesis eg. (15,000).) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Granger Inc. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 154,580 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 46,500 Loss on Disposal of Plant Assets 7,500 Increase in Accounts Receivable (49,800) Increase in Inventory (9,650) Increase in Prepaid Expenses (2,400) Decrease in Accrued Expenses Payable (4,500) Net Income 176.930 176930
Condensed financial data of Granger Inc. follow. Granger Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation $ 80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 $ 48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 102,000 16,500 110,000 220,000 234,000 $682,500 $ 67,300 21,000 146,000 175,000 105,450 $514,750 Granger Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $388,460 $135,460 12,410 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income 46,500 27,280 4,730 7,500 233,880 $ 154,580 Additional information: 1. 2. 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. 3. 4. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e g. -15,000 or in parenthesis eg. (15,000).) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Granger Inc. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 154,580 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 46,500 Loss on Disposal of Plant Assets 7,500 Increase in Accounts Receivable (49,800) Increase in Inventory (9,650) Increase in Prepaid Expenses (2,400) Decrease in Accrued Expenses Payable (4,500) Net Income 176.930 176930
Final answer:The process involves starting with Granger Inc.'s net income and then making adjustments for changes in their assets and liabilities to calculate theNet CashProvided by Operating Activities. This process is similar to Singleton Bank's change in their assets due to a business plan change.Explanation:The question pertains to preparing a statement of cash flows using the indirect method for Granger Inc. To do this, you first start with the Net Income and make adjustments for different changes in assets andliabilities. Depreciation Expense, Loss on Disposal of Plant Assets, Increase in Accounts Receivable, Increase in Inventory, Increase in Prepaid Expenses, and Decrease in Accrued Expenses Payable are some adjustments that are added or subtracted from NetIncometo reconcile to Net Cash Provided by Operating Activities. This is similar to Singleton Bank's change in the business plan that led to changes in their balance sheet which resulted in changes in their assets like reserves, loans, and deposits which are similar to the changes seen inGranger Inc.'s assets.Learn more about Cash Flow Statement Preparation here:brainly.com/question/33757456#SPJ11...