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Aylmer Inc has the following comparative financial statements. Aylmer Inc Statement of Financial Position December 31 Current Assets Cash Accounts Receivable Inventory Prepaid Items
Aylmer Inc has the following comparative financial statements. Aylmer Inc Statement of Financial Position December 31 Current Assets Cash Accounts Receivable Inventory Prepaid Items Long-term investments Property and Equipment Y2 Less: Accumulated Depreciation TOTAL ASSETS Y1 Aylmer Inc Income Statement December 31 Sales Revenue $ 156,900 $ 106,000 Cost of Sales 142,500 146,500 94,000 187,000 21,100 186,000 13,000 186,000 1,245,000 1,162,000 Gross Margin Operating Expense Income from Operations Interest Expense Gain on disposal of equipment 375,000 377,000 $ 1,523,000 $1,371,000 Current Liabilities Accounts Payable $ 52,000 $ 66,000 Income Tax Payable 26,000 25,000 Bonds Payable 676,000 765,000 Common Shares 295,000 249,000 Retained Earnings 474,000 266,000 TOTAL LIABILITIES & EQUITY $ 1,523,000 $1,371,000 Income before income tax income tax Net Income Other important information: Depreciation expense is included in "operating expenses." All accounts payable transactions were related to the purchase of inventory. During the year, a piece of equipment that originally cost $54,100 was sold for cash. The equipment was 70% depreciated at the time of the sale. Dividends were declared and paid during the year. REQUIRED Prepare the statement of cash flow using the direct method, Aylmer follows ASPE. Y2 $ 1,149,800 675,000 474,800 225,000 249,800 4,900 3,700 248,600 19,500 $ 229,100
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