Question

The current sections of Sage Hill Inc.’s balance sheets at December 31, 2021 and 2022, are...

The current sections of Sage Hill Inc.’s balance sheets at December 31, 2021 and 2022, are presented here. Sage Hill Inc.’s net income for 2022 was $175,950. Depreciation expense was $31,050.

2022

2021

Current assets

   Cash

$120,750

$ 113,850

   Accounts receivable

92,000

102,350

   Inventory

193,200

197,800

   Prepaid expenses

31,050

25,300

Total current assets

$437,000

$439,300

Current liabilities

   Accrued expenses payable

$ 17,250

$ 5,750

   Accounts payable

97,750

105,800

Total current liabilities

$115,000

$ 111,550

Homework Answers

Answer #1

Answer-

SAGE HILL INC.'S
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED 31 DECEMBER,2022
Particulars Amount
$
Cash flow from operating activities
Net loss 175950
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation 31050
Change in operating assets & liabilities
Decrease in accounts receivable 10350
Decrease in inventory 4600
Decrease in accounts payable -8050
Increase in prepaid expenses -5750
Increase in accrued expenses payable 11500
Net cash flow from operating activities 219650
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