Added long term debt of : $ 375,000 Other comprehensive income in equity increased , offset in Other current assets $ 44,000 Used Treasury Stock to buy PPE $ 54,000 Issued/sold common stock : $ 800,000 Paid dividend of $ 60,000 No additions to Goodwill HW: To Do Prepare Cash Flow Statement; Indirect Method Class Company, Inc. Balance Sheet as of Assets: 12/31/2xx2 12/31/2xx1 Current Assets: $s $s Cash 1,354,000 193,000 Accounts Receivable 450,000 418,000 Prepaid Expenses 44,000 19,000 Other Current Assets 55,000 32,000 Total Current Assets: 1,903,000 662,000 Plant Property & Equipment 1,200,000 970,000 Accumulated Depreciation 550,000 450,000 Net Plant Property & Equipment 650,000 520,000

Other Non-Current Assets: Goodwill 610,000 610,000 Deferred Loan Placement Costs 25,000 25,000 Other Non-Current assets (Investing) 72,000 81,000 Total Other Non-Current Assets 707,000 716,000 Total Assets 3,260,000 1,898,000

Liabilities: Current Liabilities Accounts Payable 129,000 139,000 Accrued Expenses 60,000 72,000 Current Portion of LT debt 90,000 100,000 Other Current Liabilities 40,000 30,000 Total Current Liabilities 319,000 341,000

Non-Current Liabilities Long Term Debt 1,100,000 915,000 Deferred Income Taxes 105,000 86,000 Other Non-current Liabilities (Financing) 14,000 12,000 Total Non-Current Liabilities 1,219,000 1,013,000 Total Liabilities 1,538,000 1,354,000

Owners Equity Paid-in Capital 1,000,000 200,000 Treasury Stock 26,000 80,000 Dividends paid [before closing entries] 60,000 0 Other comprehensive income 68,000 24,000 Retained Earnings 740,000 400,000 Total Owners' Equity 1,722,000 544,000 Total Liabilities and Owners Equity 3,260,000 1,898,000

0 0 Class Company, Inc. Statement of Income Period Ending 12/31/2xx2 $s $s Revenue 4,500,000 100.0% Cost of Goods Sold 2,300,000 51.1% Gross Profit 2,200,000 48.9%

Operating Expenses: Total Operating Expenses 1,700,000 24.5% Operating Income 500,000 11.1% Other Income ( net of (expense)) 60,000 1.3% Income Before Taxes 560,000 12.4% Provision for Income Taxes 220,000 4.9% Net Income 340,000 7.6%