Financial statements for Farley Corporation are presented on P.O. 5 pages 915 and 916.

Additional information contained in the records revealed that equipment hav¬

ing a cost of $47,000 and accumulated depreciation of $35,600 was sold for

$18,000 cash. Also, 4,700 shares of common stock having a par value of $10 per share were sold for $54,000 cash.

Instructions Prepare a statement of cash flows for the year 19x8.

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Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold: Merchandise Inventory, January 1, 19x8 Net Purchases Goods Available for Sale Less Merchandise Inventory, December 31, 19x8 Cost of Goods Sold $ 886 89000 1078000 $352 62000 625 76000 $97838000 37509000 $ 102 49000 1800000 640000 2216000 271000 92000 $ 876 11000 603 29000 $272 8 2000 15268000 $120 14000 Gross Profit Operating Expenses: Salary Expense Rent Expense Advertising Expense Depreciation Expense, Equipment Supplies Expense Miscellaneous Expense Total Operating Expenses Income from Operations Other Income: Interest Income Gain on Disposal of Plant and Equipment Total Other Income Other Expenses: $ 47000 660000 $ 707000 Interest Expense Income Before Income Tax Income Tax Expense Net Income 32000 675000 $12689000 3867000 $ 8822000