136 N A m E Use the following data for Music Company to prepare a statement of cash flows using the indirect method for the year ended June 30, Tometsko Music Company Income Statement For the Year Ended June 30, 19x2 Net Sales $350,000 Less Expenses Cost of Goods Sold $200,000 Depreciation Expense 20,000 Administrative Expenses 52,000 ng Expenses 45,000 Loss on Sale of Investment 500 Total Expenses 317,500 Net Income 32,500 Tometsko Music Company Comparative Balance Sheets June 30 19x2 and 19x1 Assets 19x2 19x 1 Cash 4.500 15,000 Accounts Receivable (net) 35,000 27,500 Inventory 50,000 Prepaid Expenses 000 2,500 Long-Term Investments 20,000 25,000 Plant and Equipment 80,000 Accumulated Depreciation (20,000) (12,000) Total Assets S162,500 $148,000 Liabilities Accounts Payable 2,000 S 6,000 Wages Payable 260 Notes Payable 20,000 000 Total Liabilities S 23,000 19,000 Stockholders' Equity Common Stock 58,000 65,000 Retained Earnings 81,500 000 Total Stockholders' Equity $139,500 $129,000 Total Liabilities and Stockholders' Equity 3162,500 3148,000 Additional information: A plant asset costing $20,000 was sold for its book value of $8,000. long-term investment was sold for $4,500. The outstanding notes are long-term. An $8,000 note was issued during 19x2 has a ts for to CK Copyright c by Houghton Miffin Company. All rights reserved