2.(25 marks) The Cash flows statement for the year ended December 31, 2018 and other data for Boadway Corporation are shown below: Operating: Cash collections from customers $ 375,000 Dividends received 10,000 Cash disbursements for Merchandise 120,000 Salaries 55,000 Taxes 25,000 Other operating expenses 25,000 $ 160,000 CFO Investing Disposal of investments Acquisition of machinery CFI 40,000 (150.000) (110,000) Financing: Issue of capital stock 50,000 TCF (Net increase in cash) $100,000 Additional data: a. Boadway's dividends receivable decreased by $2,000 during the year. b. The Machinery account, net of accumulated depreciation, increased by $100,000 during the year. The only other transaction, exclusive of depreciation was the write-off in May 2018, of obsolete machinery that had a book value of $8,000. c. A/R increased by $40,000 during 2018. The allowance account (AFBD) increased by $4,000. There were no write-offs of uncollectible accounts. d. Salaries payable at the beginning of the year were $6,000; at the end of the year, $10,000. e Inventories decreased $12,000 during 2018. f. Taxes payable increased $6,000 during the year. g. The investments that were sold had a book value of $30,000. Required: Prepare Boadway's 1/5 for the year ended December 31, 2018 2.(25 marks) The Cash flows statement for the year ended December 31, 2018 and other data for Boadway Corporation are shown below: Operating: Cash collections from customers $ 375,000 Dividends received 10,000 Cash disbursements for Merchandise 120,000 Salaries 55,000 Taxes 25,000 Other operating expenses 25,000 $ 160,000 CFO Investing Disposal of investments Acquisition of machinery CFI 40,000 (150.000) (110,000) Financing: Issue of capital stock 50,000 TCF (Net increase in cash) $100,000 Additional data: a. Boadway's dividends receivable decreased by $2,000 during the year. b. The Machinery account, net of accumulated depreciation, increased by $100,000 during the year. The only other transaction, exclusive of depreciation was the write-off in May 2018, of obsolete machinery that had a book value of $8,000. c. A/R increased by $40,000 during 2018. The allowance account (AFBD) increased by $4,000. There were no write-offs of uncollectible accounts. d. Salaries payable at the beginning of the year were $6,000; at the end of the year, $10,000. e Inventories decreased $12,000 during 2018. f. Taxes payable increased $6,000 during the year. g. The investments that were sold had a book value of $30,000. Required: Prepare Boadway's 1/5 for the year ended December 31, 2018