(10 points) G Companys 2018 and 2019 balance sheets and 2019 income statement follow 12 31 18 12 31 19 Cash $700,000 $2,043,000 Accounts receivables, net 1,200,000 800,000 Prepaid items 100,000 138,000 Investments 0 412,000 Plant assets 3,800,000 4,600,000 Accumulated depreciation (1,000,000) (1,400,000) $4,800,000 $6,593,000 Short term debt 200,000 750,000 Accounts payable 100,000 100,000 Accrued liabilities 300,170 88,000 Cash dividends payable 100,000 105,000 Bonds payable, net 298,830 496,000 Common stock ($1 par value) 100,000 100,000 Additional paid in capital, common stock 1,400,000 1,400,000 Treasury stock (75,000) (95,000) Retained earnings 2,376,000 3,649,000 $4,800,000 $6,593,000 Sales $19,000,000 Operating expenses 16,800,000 Other income gains losses, net 18,406 Interest expense 29,000 Income before taxes 2,189,406 Income tax expense 496,406 Net income $1,693,000 Additional information for G follows On 01 01 19, G paid $400,000 for 60 of Zima Companys outstanding common stock During 2019, Zima reported net income of $20,000 On 07 01 19, G sold a plant asset for $75,000 G had acquired the plant asset on 01 01 15 for $500,000 On this particular asset, G estimated a 5 year useful life and no salvage value G depreciates its plant assets using a straight line method and records depreciation expense to the nearest full month During 2019, G recorded a $15,000 impairment loss on one of its plant assets On 12 31 14, G issued $300,000 of its 6 , 5 year term bonds The bonds pay interest every 06 30 and 12 31 At the time G issued the bonds, similar bonds paid 6 25 interest At the time of issuance, G incurred and paid $2,000 of bond issuance costs On 06 30 19, after making its semi annual interest payment, G retired the bonds at 101 On 12 31 19, G issued $500,000 of its 2 , 5 year term bonds The bonds pay interest every 06 30 and 12 31 At the time G issued the bonds, similar bonds paid 2 interest At the time of issuance, G incurred and paid $4,000 of bond issuance costs On 08 04 19, G bought back some of its outstanding common stock For 2019, this was Gs only treasury stock transaction In the past, G has only bought back its common stock it has never reissued any of its treasury stock During 2019, G declared and distributed cash dividends on its outstanding common stock On Gs income statement, the Other income gains losses, net caption consists of gains losses on fixed asset sales, gains losses on bond retirements, and impairment losses G records adjusting journal entries only once a year as of year end Prepare a statement of cash flows for G the year ended 12 31 19 G uses the indirect method Label your section answers as provided by OR used in In your reconciliation of net income to cash flows from operating activities, be specific in your reconciling items Also, be sure to support your reconciling item amounts with journal entries and or amortization schedules and or other supporting calculations that you deem appropriate

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(10 points) G Companys 2018 and 2019 balance sheets and 2019 income statement follow: 12-31-18 12-31-19 Cash $700,000 $2,043,000 Accounts receivables, net 1,200,000 800,000 Prepaid

(10 points) G Companys 2018 and 2019 balance sheets and 2019 income statement follow:

12-31-18 12-31-19

Cash $700,000 $2,043,000

Accounts receivables, net 1,200,000 800,000

Prepaid items 100,000 138,000

Investments 0 412,000

Plant assets 3,800,000 4,600,000

Accumulated depreciation (1,000,000) (1,400,000)

$4,800,000 $6,593,000

Short-term debt 200,000 750,000

Accounts payable 100,000 100,000

Accrued liabilities 300,170 88,000

Cash dividends payable 100,000 105,000

Bonds payable, net 298,830 496,000

Common stock ($1 par value) 100,000 100,000

Additional paid-in-capital, common stock 1,400,000 1,400,000

Treasury stock (75,000) (95,000)

Retained earnings 2,376,000 3,649,000

$4,800,000 $6,593,000

Sales $19,000,000

Operating expenses 16,800,000

Other income/gains/losses, net 18,406

Interest expense 29,000

Income before taxes 2,189,406

Income tax expense 496,406

Net income $1,693,000

Additional information for G follows:

On 01-01-19, G paid $400,000 for 60% of Zima Companys outstanding common stock. During 2019, Zima reported net income of $20,000.
On 07-01-19, G sold a plant asset for $75,000. G had acquired the plant asset on 01-01-15 for $500,000. On this particular asset, G estimated a 5-year useful life and no salvage value. G depreciates its plant assets using a straight-line method and records depreciation expense to the nearest full month.
During 2019, G recorded a $15,000 impairment loss on one of its plant assets.
On 12-31-14, G issued $300,000 of its 6%, 5-year term bonds. The bonds pay interest every 06-30 and 12-31. At the time G issued the bonds, similar bonds paid 6.25% interest. At the time of issuance, G incurred and paid $2,000 of bond issuance costs. On 06-30-19, after making its semi-annual interest payment, G retired the bonds at 101.
On 12-31-19, G issued $500,000 of its 2%, 5-year term bonds. The bonds pay interest every 06-30 and 12-31. At the time G issued the bonds, similar bonds paid 2% interest. At the time of issuance, G incurred and paid $4,000 of bond issuance costs.
On 08-04-19, G bought back some of its outstanding common stock. For 2019, this was Gs only treasury stock transaction. In the past, G has only bought back its common stock; it has never reissued any of its treasury stock.
During 2019, G declared and distributed cash dividends on its outstanding common stock.
On Gs income statement, the Other income/gains/losses, net caption consists of gains/losses on fixed asset sales, gains/losses on bond retirements, and impairment losses.
G records adjusting journal entries only once a year as of year-end.

Prepare a statement of cash flows for G the year ended 12-31-19. G uses the indirect method. Label your section answers as provided by OR used in. In your reconciliation of net income to cash flows from operating activities, be specific in your reconciling items. Also, be sure to support your reconciling item amounts with journal entries and/or amortization schedules and/or other supporting calculations that you deem appropriate.