PREPARING A STATEMENT OF CASH FLOWS. Financial statements for Rowe Publishing Company appear below and on the next page:

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ASSETS ROWE PUBLISHING COMPANY Balance Sheets As of December 31, 19x5 and 10x1 19x5 19x4 Current assets: Cash Accounts receivable Inventory. $ 85,000 240,000 190,000 $ 66,000 231,000 170,000 Total current assets 515,000 467,000 Property, plant, and equipment: Land $ 30,000 $ 30,000 Building 370,000 370,000 Equipment 155,000 130,000 555,000 530,000 Accumulated depreciation (375,000) (350,000) Net property, plant, and equipment 180,000 $695,000 180,000 $647,000 Total assets LIABILITIES Current liabilities: Accounts payable Notes payablet Salaries payable Income taxes payable Total current liabilities Long-term debt: Mortgage payablet Total liabilities EQUITY $133,000 $121,000 115.000 150,000 15,000 11,000 10,000 17,000 273,000 299,000 50,000 -0- 323,000 299,000 Common stock Retained earnings $300,000 72,000 $300,000 48,000 Total equity 372,000 348,000 Total liabilities and equity $695,000 $647,000