Abrahams Manufacturing Company Balance Sheet for 1/31/2017 and 1/31/2018 2017 2018 Cash $ 89,000 $ 114,000 Accounts receivable 64,000 68.100 Inventory 112,000 10,000 Prepaid expenses Total current assets $ 275,000 $ 284.000 Cross plant and equipment 312 000 238.000 (40.000) Accumulated depreciation 165.000 Total assets $ 473,000 $ 531.000 Accounts payable $ $ 85.000 68 000 92.000 61.000 Accrued liabilities Total current debt $ 163 000 $ 153.000 Mortgage payable 70,000 0 Preferred stock 0 125,000 Common stock 205,000 45,000 205,000 48,000 Retained earnings Total debt and equity $ 473,000 $ 531,000 Abrahams Manufacturing Company Income Statement for the Year Ended 1/31/2018 2018 Sales $ 182,000 58,000 Cost of goods sold Gross profit 124,000 Selling general and administrative expenses 44,000 25 000 Depreciation expense Operating income $ 55.000 21600 Interest expense $ 52 400 Earnings before taxes Taxes 16 768 12 000 Preferred stock dividends S 23.632 Earnings available to common stockholders Additional Information 1. The only entry in the accumulated depreciation account is for 2018 depreciation. 2. The firm paid $20.632 in common stock dividends during 2018. Statement of Cash Flows Cash Flows from Operating Activities Net income $ Adjustments Depreciation Increase in accounts receivable Decrease in inventory Increase in account payable Decrease in accrued liabilities Net cash provided by operating activities U puid WV,02 Cash Flows from Investing Activities Increase in gross plant and equipment $ Net cash used in investing activities Complete the financing activities part of the statement of cash flows: (Round to the nearest dollar. Statement of Cash Flows (Cont'd) Cash Flows from Financing Activities Decrease in mortgage payable Increase in preferred stock $ Dividends Net cash provided by financing activities $ Net increase in cash Cash, February 1, 2018 Cash. January 31, 2018