1. Cash Flow Statement for Next Wave

(15 marks)

V Condensed nancial data for NextWave Company appear below: WAVE COMPANY (10111de Balance Sheet December 3! 2000 2007 Assets Cash 5 86,700 $ 47,250 Accounts receivable 76.800 57.000 Inventories 121.900 92.650 longterm investments 04,500 97,000 Capital assets 200,000 235,000 Accumulated amortization 179.500) 70,000) $570,400 $458,300 1531110115 and shamelwlders' equity Accounts payable $ 52,700 $ 48.200 Income taxes payable 12.100 18,920 Bonds payable 190,000 70,000 Common shares 230.000 200.000 Retained earnings 175.600 121.700 $570,400 5450.900 NEXTWAVE COMPANY Income Statement Data For them:- Ended December 31, 2008 Sales revenue $427,500 Gain on sale of capital assets 3,700 431,200 Less Cost of goods sold $199,500 Operating expenses (excluding amortization expense) 14,700 Amortization expense 49.700 Income taxes' ' - l\"100 304.000 Net income $127,200 Additional information: O Some of the long-term investments were sold at their book value (or carrying .value]. As a result, there was no gain or loss on this transaction. 0 Capital assets costing $47,000 were sold for $10,500. which was $3,700 more than their book value at the time of dispoaal