1 Comprehensive Problem 2 - St of Cash Flows and Ratios Algo R. Allen Inc. Income Statement For years ended December 31, 2017 and 2018 50 points R. Allen Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change 2018 02:49:45 Sales (all on credit) Cost of goods sold Gross margin 2017 $528,000 $475,000 (321,000) (263,000) 207,000 212,000 Current assets: Cash $50,270 $31,700 $18,570 Accounts receivable (net) Inventory 38,000 32,000 6,000 44,000 42,000 2,000 Prepaid expenses 1,200 2,700 -1,500 Depreciation expense 37,000 51,000 Other current assets 1,700 2,600 -900 eBook References Other operating expenses Total operating expenses Operating income Other income (expenses) 114.000 95.000 Total current assets 135,170 111,000 24,170 151,000 146,000 56,000 66,000 Long-term Investments 81,000 56,000 25,000 Plant assets 307,000 257,000 50,000 Less: accumulated Interest expense (4,700) (3,500) (77,800) (51,000) 26,800 depreciation Gain on sale of 5,500 3,900 Total plant assets 229,200 206,000 23.200 investments Loss on sale of plant (2.700) (3.200) Total assets 445.370 373.000 72.370 assets Total other income (12,900) (2,800) (expenses) Income before income taxes 54,100 63,200 Income taxes expense Net income (16,230) (18,960) $37.870 $44.240 Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities $25,500 $26,000 $-500 3,600 3,000 600 1.400 5.000 -3,600 30,500 34,000 -3,500 R. Allen Inc. Long term liabilities: Statement of Retained Earnings For the year ended December 31, 2018 Notes Payable 236,000 175,000 61,000 Total liabilities 266,500 209,000 57,500 2018 2017