A B C D E F G H 1 see notes Solution a) Cash flow statement Cash flow from operating activities Net income 107000 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation expense 160000 Loss on sale of equipment 20000 Increase in account receivable 120000 decrease in inventory 25000 decrease in prepaid expanses 10000 increase in Account Payable 72000 decrease in accrued liabilities 18000 149000 Net cash provided by operating activities 256000 (385000-505000) (615000-590000) 120000-10000) 1632000-560000) (37000-55000) (107000 149000) cash flow from Investing activities: cash received from sale of equipment cash paid for equipment Net cash used for investing activities 30000 375000 see notes (30000-375000) -345000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 MA 120000 100000 -58000 (420000-300000) 1920000-820000) Cash flow from Financing activities: issue of debt issue of common stock cash payment of Dividend Net cash used by financing activities Net increase decrease) in cash Add: Beginning cash balance Ending cash balance (120000+100000-58000) (256000-345000 162000) 162000 73000 45000 118000 (73000 45000) beg bal purchase end.bal. Equipment 1510000 375000 1780000 105000 cost of equipment sold (1780000+105000-1510000375000 Accumulated depreciation bes, bal accumulated depreciation on equipment sold 55000 end.bal. 425000 160000 depreciation expense 580000 (55000+580000-475000-160000) Question 1 What is the depreciation expense for Year 2? What is the Year 2 purchase of Propety, Plant & Equipment (PP&E)? What is Year 2 Net Cash Flow from Operating Activities