11-1B - Basic Cash Flow Statement The financial statements of Safety First are presented below: Safety First Balance Sheet Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Bank loan payable Common shares Retained earnings As at December 31 2024 2023 $2,600 $500 500 800 2,500 2,300 21,000 17,000 (3,800) (3,000) $22,800 $17,600 Total liabilities and shareholders' equity Safety First Income Statement $200 $600 400 2,000 300 0 200 100 20,000 $22,800 16,600 $17,600 For the Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes $51,000 29,000 22,000 15,000 7,000 100 6,900 2,000 $4,900 Income taxes Net income Additional information: 1.) Operating expenses are composed of: Depreciation $1,800; Salaries $12,000; Loss on Sale of Equipment $400; other operating expenses $800. 2.) Other operating expenses are cash expenses. 3.) Equipment was purchased during the year for $7,000 cash. 4.) Equipment was sold for cash during the year. The original cost of the equipment was $3,000, and the accumulated depreciation was $1,000. 5.) Dividends were declared and paid during the year.