Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation equipment 23,059 1,898 6,259 20,361 (8,914) 17,598 $ 60,261 2,536 1,139 5,868 42,191 (17,026) 10,778 $ 45,486 Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $ 2,763 2,993 19,800 34,705 $ 60,261 4,464 6,841 8,000 26,181 $ 45,486 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 32,380 Cost of goods sold (12,834) Gross margin 19,546 Depreciation expense (3,117) Operating income 16,429 Gain on sale of equipment 700 Loss on disposal of land (80) Net income $ 17,049 FANNING COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: SETS Less: Increase/Decrease in current assets and current liabilities: ok ences Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Additional Data 1. During Year 2, the company sold equipment for $18,371, it had originally cost $28,900. Accumulated depreciation on to equipment was $11,229 at the time of the sale. Also, the company purchased equipment for $7,070 cash. 2. The company sold land that had cost $4.980. This land was sold for $4.900, resulting in the recognition of a $80 loss. common stock was issued in exchange for title to land that was valued at $11,800 at the time of exchange. 3. Paid dividends of $8,525. eflook he Cash flows from investing activities: Book Cash flows from financing activities: Print rences Ending cash balance Schedule of noncash investing and financing activities