Balance Sheet 12/31/2020 Increase 12/31/2019 (Decrease) Income Statement For the year ended December 31, 2020 Assets Cash $ 188,400 $ 101,180 Net sales $ 1,832,000 Accounts receivable Inventory 175,500 185,900 192,300 170,500 Gross Profit Total current assets Land Property Plant and Equipment Accumulated depreciation Total assets Liabilities Accounts payable Income tax payable 556,200 457,580 125,000 165,000 473,500 (158,000) $ 996,700 $ 909,080 390,500 Cost of goods sold Operating expenses General & admin exp Selling expenses Depreciation expense 1,094,000 738,000 $ 262,000 250,000 54,000 (104,000) Net operating income 566,000. 172,000 Other revenue (expenses) Interest expense (4,000) Loss on sale of land Net income before taxes (10,000) 103,000 $ 99,000 33,180 36,180 Income tax expense Net income (14,000) 158,000 33,180 $ 124,820 Total current liabilities 136,180 135,180 Long-term notes payable 125,000 150,000 Total liabilities 261,180 285,180 Equity Common stock 608,000 548,000 Retained earnings 107,520 71,700 Total liabilities and equity $ 976,700 $ 904,880 Required: Additional information includes the following: a. The only transaction in property plant and equipment was the purchase of new equipment. b. Issued 12,000 shares of common stock for $5 cash per share. c. Sold land costing $40,000. d. The only changes affecting retained earnings are net income and cash dividends paid. e. The only transaction in long-term notes payable were principal payments on existing debt. Statement of cash flows Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash provided (used) by operating activities Cash flows from investing activities: Net cash provided (used) by investing activities Cash flows from financing activities: Net cash provided (used) by financing activities Net increase (decrease) in cash Cash balance at December 31, 2019 Cash balance at December 31, 2020