Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Transcribed Image Text:The following information was taken from the comparative financial statements of Foggy Industries, Inc., for the years
ended December 31, 2021 and 2022:
Net income for 2022
Sales revenue.
Cost of goods sold.. . . . .
Depreciation expense for 2022. . . . . .
$ 160,000
2,200,000
1,700,000
150,000
Interest expense on short-term debt for 2022.
20,000
Dividends declared and paid in 2022. . . . .
60,000
Utilities expense
10,000
Dec. 31, 2022
Dec. 31, 2021
Accounts receivable (net)
$ 120,000
Inventory
Accounts payable
$110,000
190,000
180,000
148,000
156,000
Use the direct method to compute cash flows provided by operating activities in 2022. (Hint: Prepare the
Statement of Comprehensive Income in good form to identify the operating expenses.)
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