15 16 10112001140S1690 10 11 12 13 14 PROBLEM N9 (17 MARKS) The Fisheries Processing Corporation, a private corporation following ASPE, prepared the following income statement and comparative balance sheet for 2019: FISHERIES PROCESSING CORPORATION Income Statement Year Ended December 31, 2019 $ 1,800,000 880,000 920,000 227,000 197,000 120,000 Sales... Cost of goods sold Gross profit Depreciation expense Other operating expenses... Loss on sale of land.. Profit from operations.. 376,000 Interest expense Profit before income tax. 211,000 Income tax expense.. Profit 165,000 70,800 $ 140,200 FISHERIES PROCESSING CORPORATION Comparative Balance Sheet December 31 2019 2018 Assets Cash Accounts receivable Merchandise inventory Property, plant, and equipment Less: Accumulated depreciation Goodwill Total Assets $385,200 640,000 2,336,000 880,000 (787,000) 219,000 $3,673,200 $ 200,000 670,000 2,090,000 800,000 (560,000) 219,000 $ 3.419.000 Liabilities and Shareholders' Equity Accounts payable Other accrued payables $ 389,000 160,000 $ 265,000 240,000 LIEBRERO 3.0 46 B91101101 12 13 14 15 16 Dividends payable Income taxes payable Note payable (long-term) Bonds payable Common shares Retained earnings Total Liabilities & Shareholders' Equity 80,000 27,000 180,000 900,000 1,600,000 337.200 $3,673,200 80,000 42,000 560,000 400,000 1,600,000 232.000 $3.419.000 Additional data: 1. Equipment was purchased for $ 400,000 in cash. 2. Land was sold for cash proceeds of $ 200,000 Page 16 3. The company sold bonds for $500,000 in cash and made $ 380,000 of principal payments in cash on the notes payable. 4. Cash dividends were paid during the year. Instructions: Prepare a cash flow statement for the year ended December 31, 2019 using the indirect method. Answer on Page 18