2017 $ 131,500 97,000 85,000 450,000 (40,000) $ 723.500 Problem 4 Cox Company, a merchandiser, recently completed its calendar-year 2018 operations: Assets 2018 Cash $ 54,200 Accounts receivable 85,000 Inventory 92,000 Building 520,000 Accumulated Depreciation - Building (4,000) Copyright 27,000 Total Assets $774.200 Liabilities and Stock holders' Equity Accounts payable $ 12,500 Dividends payable 5,000 Mortgage payable 108,000 Bonds Payable 300,000 Discount on Bonds Payable Premium on Bonds Payable 6,000 Common stock, $2 par 50,000 Paid-in capital in excess of par--common stock 155,000 Paid-in Capital - Treasury Stock 1,200 Retained Earnings 151,200 Treasury Stock (14.700) Total Liabilities and Equity $ 774.200 $ 7,500 1,000 500,000 (10,000) 40,000 65,000 120,000 $ 723.500 $ 320,000 175,000 145,000 The income statement for the yea ended December 31, 2018, is as follows: Sales Cost of goods sold Gross Profit Operating expenses: Depreciation expense - Building $4,000 Amortization expense - Copyright 3,000 Other operating expenses 17,000 Total operating expenses Operating income Other Income and (Expenses): Loss on retirement of bonds payable (15,000) Gain on sale of building 10.000 Income before income tax Income tax expense Net income 24,000 121,000 (5.000) 116,000 34.800 S 81.200 Additional Information on the Next Page! Additional Information for Cox Company (Statement of Cash Flows): The following additional information was taken from the records: a. Sold a Building costing $50,000 with Accumulated Depreciation of $40,000 for a gain. b. Purchased a Building costing $120,000 by paying $12,000 down and signing a Mortgage Payable for the balance. c. Purchased a Copyright for $30,000, paying cash. d. Called in Bonds Payable on January 1, 2018, at a price of 101. These Bonds Payable had a face value of $500,000, remaining Discount balance of $10,000, and were called in at a loss. e. Issued $300,000 of Bonds Payable at a price of 102. f. Sold 5,000 shares of common stock at $20 per share. g. Purchased 1,000 shares of own stock for the treasury at $21 per share. h. Reissued 300 shares of treasury stock at $25 per share. i. Declared a cash dividend. Instructions: Complete the ENTIRE Statement of Cash Flows, using the INDIRECT method for operating activities