20XX means last year. 20XY means current year. For December 31, 20XX (last year), the balance sheet is as follows. Current Assets Cash Accounts receivable Inventory Prepaid expenses Capital Assets Plant and equipment (gross) Less: Accumulated amortization Net plant and equipment Total assets Balance Sheet Liabilities $13.900 Accounts payable 17,800 Notes payable 27,500 Bonds payable 17,700 Shareholders' Equity $307,000 Common stock. 54,400 Retained eamings 252,600 $329,500 Total liabilities and shareholders' equity $16,500 26,700 50,500 $75,000 160,800 $329,500 Sales for 20XY (current year) were $266,000, with cost of goods sold being 68 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 14 percent, while interest on the notes payable was 18 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $23,700, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 19 percent, and accounts payable increased by 33 percent. A new machine was purchased on December 31, 20XY, at a cost of $25,500. A cash dividend of $12,000 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $6,269 and bonds payable decreased by 10,780. The common stock account did not change. Sales 266,000 Cost of goods sold 180,880 Selling and administration expense 23,700 Amortization expense 25,200 Interest exper Answer 4 Taxes 0.18 Earnings after taxes (net income) b. Prepare a balance sheet as of December 31 30YX (Input all b. Prepare a balance sheet as of December 31, 20XY. (Input all answers as positive values.) Balance Sheet For the Year Ended December 31, 20XY Assets: Cash 13,300 Accounts receivable 17,800 Inventory 27,500 Prepaid expenses 17,700 Plant and Equipment 307,000 less: acc. amortization c. Prepare a statement of cash flows for the year ending December 31, 20XY. ( Negative cashflow should be indicated with a minus sign.) Statement of Cashflows For the Year Ended Dec 31, 20XY Operating Activities: Net income Add items not requiring an outlay of cash: Amortization Expense Changes in non-cash working capital: Change in accounts receivable Change in inventory Change in accounts payable Change in notes payable Cash provided by/used in operating activities Investing activities: Change in plant and equipment Cash provided by/used in Investing activities Financing activities: Change in bonds payable Common stock dividends paid Cash provided by/used in financing activities