becoming more complex. Sharon Nanny, the owner, has asked for your help in understanding the Problem 20 The operations of the Bloated Goat Caf, a small food service operation, are condensed balance sheets and the additional information provided. The Bloated Goat Caf Condensed Balance Sheets December 31, 20X1 and 20X2 Cash Accounts Receivable Inventory Investments (noncurrent) Equipment Accumulated Depreciation Total Assets 20X1 $ 15,000 15,000 25,000 10,000 240,000 (20,000) $285,000 20X2 $ 12,000 14,000 20,000 5,000 320,000 (50,000) $321,000 $ 18,000 10,000 5,000 $ 10,000 10,000 10,000 Current Liabilities: Accounts Payable Note Payable (current) Dividends Payable Noncurrent Liabilities: Note Payable Common Stock Treasury Stock Retained Earnings Total Liabilities and Owners' Equity 152,000 100,000 (40,000) 40,000 $285,000 171,000 100,000 (50,000) 70,000 $321,000 The Statement of Cash Flows 221 Additional information: 1. Investments costing $10,000 were sold for $15,000. 2. Dividends paid during 20x2 totaled $10,000. The cafe's van, which cost $20,000, was sold for $5,000. Its net book value on the date Assume that the retained earnings account is affected only by dividends declared and the results of operations (net income). 5. Assume current liabilities are paid on a timely basis. of sale was $3,000. Required: 1. What amount of dividends was declared during 20X2? 2 What amount of the note payable was paid during 20X2? 3. What impact did the change in inventory during 20X2 have on cash? 4. What impact did the change in accounts payable during 20X2 have on cash? 5. What were the results of operations for 20X2? 6. What amount of investments was purchased during 20X2? 7. What was the depreciation expense for 20X2