3 - Homework 0 Saved SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities $ 34,585 $ 38,020 Accounts payable 17.901 27.946 Notes payable 3,670 42.712 Other 2020 Assets Current assets Cash Accounts receivable Inventory 2021 $ 36,902 $ 42,682 19,208 16,350 20.044 24,794 Total $ 56,156 $ 108,678 Total $ 76,154 $ 83,826 Long-term debt $ 116,000 $ 176,741 Owners' equity Common stock and paid-in surplus $ 55,200 $ 55,200 Accumulated retained earnings 273,237 312,844 Fixed assets $ Net plant and equipment $ 464,435 $ 519,933 Total $ 328,437 368,044 Total assets $ 520,591 $ 628,611 Total liabilities and owners' equity $ 520,591 $ 628,611 SMOLIRA GOLF CORPORATION SMOLIRA GOLF CORPORATION 2021 Income Statement Sales Cost of goods sold Depreciation $ 507,454 360,028 44,713 es Earnings before interest and taxes Interest paid $ 102,713 19,883 Taxable income Taxes (22%) $ 82,830 18,223 Net income $ 64,607 Dividends Retained earnings $ 25,000 39,607 SMOLIRA GOLF CORPORATION Statement of Cash Flows For 2021 $ 34,585 $ Cash, beginning of the year Operating activities Net income Add: Increase in accounts payable Add: Depreciation Add: Increase in other current liabilities Less: Increase in inventory Less: Increase in accounts receivable 64,607 5,780 44,713 4,750 -39,042 -10,045 Net cash from operating activities Investment activities Fixed asset acquisition Net cash from investment activities Financing activities Increase in long-term debt Decrease in notes payable 60.741 -2,858 Net cash from financing activities Cash, end of year $ 38,020