4 What were the AProblem 18 5 What was the amount of becoming more balance sheets and the additional information provided. Condensed Balance Sheets complex. Natalie Rae, the owner, has asked for your help in understanding the condensed The operations of the Great Rae Caf, a small food service operation, are I The Great Rae Caf December 31, 20X1 and 20X2 20X1 20X2 $ 15,000 15,000 25,000 110,000 240,000 $ 12,000 14,000 20,000 105,000 320,000 (50,000) $421,000 Cash Accounts Receivable Inventory Investments (noncurrent) Equipment Accumulated Depreciation Total Assets (20,000) $385,000 $ 18,000 sy 10,000 5,000 Current Liabilities: Accounts Payable Note Payable Dividends Payable Noncurrent Liabilities: Note Payable Common Stock Treasury Stock Retained Earnings Total Liabilities and Owners' Equity $ 10,000 10,000 10,000 152,000 200,000 (40,000) 40,000 $385,000 171,000 Abole 200,000 bof (50,000) 70,000 $421,000 lup Additional information: 1. Investments costing $10,000 were sold for $5,000. 2. Dividends paid during 20X2 totaled $30,000. 3. The caf's van, which cost $20,000, was sold for $5,000. Its net book value on the date The Statement of Cash Flows 219 of sale was $3,000. 4. Marketable securities purchased during 20X2 for $5,000 were sold for a gain of $2,000 5. Assume that the retained earnings account is affected only by dividends declared and during 20X2, the result of operations (net income). 6. Assume current liabilities are paid on a timely basis. 7. Assume the current amount of notes payable was reclassified from the noncurrent notes payable. Required: What amount of dividends was declared during 20X2? . What amount of the note payable was paid during 20X2? 2 What impact did the change in inventory during 20X2 have on cash? A What impact did the change in accounts payable during 20X2 have on cash? 5. What was the net income for 20X2? 6. What amount of investments was purchased during 20X2? 7. What was the depreciation expense for 20X2? 8. What was the amount of working capital at the beginning of 20X2? sbro 9. What amount of cash was received on the sale of marketable securities during the year? 10. What amount of treasury stock was sold during 20X2