Chapter One Challenge Exercise 1 LO 3 The following items and amounts were taken from Lotte Inc s 2022 financial statements 84 700 Cash 123 192 Retained earnings 1 1 22 Cost of goods sold 438 192 Salaries and wages expense 115 131 7 818 Prepaid insurance 64 618 Inventory Accounts receivable Sales revenue Notes payable Accounts payable Service revenue Interest expense 88 419 584 951 6 499 49 384 4 806 1 882 Instructions a Prepare a balance sheet as of December 31 2022 b What percentage of assets were acquired by owners investment Challenge Exercise 2 LO 3 This information is for Kidmann Corporation for the year ended December 31 2022 Cash collected from customers Cash received from issuing common stock Cash paid for new building Cash dividends paid Cash payments to suppliers Cash received from sale of equipment Cash paid for operating expenses Cash paid to retire debt Cash balance 1 1 22 60 000 40 000 70 000 6 000 15 000 10 000 10 000 14 000 13 000 Instructions a Prepare the 2022 statement of cash flows for Kidmann Corporation b Which activity is most important to the long run success of any company Why Copyright 2019 John Wiley Sons Inc Kimmel Financial Accounting 9 e Challenge Exercise Solutions Page 1 1 For Instructor Use Only