Broad Street Stores Inc

Balance Sheet

As at December 31, 2015

	2015	2014
Current Assets
Cash	$ 29,489.25	$ 33,579.00
Accounts receivable	$ 89,328.75	$ 92,772.75
Interest receivable	$ 1,291.50	$ 1,937.25
Inventories	$ 79,980.75	$ 70,509.75
Investments	$ 126,659.25	$ 127,735.50
Plant assets
Land	$ 75,552.75	$ 21,525.00
Equipment	$ 217,187.25	$ 201,689.25
	$ 619,489.50	$ 549,748.50
Current liabilities
Accounts payable	$ 35,301.00	$ 38,529.75
Salary payable	$ 18,081.00	$ 17,435.25
Other accrued liabilities	$ 52,521.00	$ 48,431.25
Long term liabilities
Mortgage	$ 86,930.25	$ 138,713.25
Stockholders equity
Preferred Stock	$ 153,750.00	$ 123,000.00
Common stock	$ 159,900.00	$ 141,450.00
Retained earnings	$ 113,006.25	$ 42,189.00
	$ 619,489.50	$ 549,748.50

Income Statement

For the period ending December 31, 2015

Revenues
Sales revenue		$ 942,795.00
Less cost of goods sold		$ (441,693.00)
Gross profit		$ 501,102.00
Expenses
Salary expense	$ 164,451.00
Depreciation expense	$ 32,933.25
Other operating expense	$ 106,979.25	$ 304,363.50
Operating income		$ 196,738.50
Other Revenues and Expenses
Gain on sale of land	$ 2,460.00
Interest expense	$ (52,951.50)
Interest revenue	$ 25,184.25	$ (25,307.25)
Income before tax		$ 171,431.25
Income tax expense		$ (36,377.25)
Net income		$ 135,054.00

Additional information.

1. The company paid dividends of $64,236.75.
2. The company sold a parcel of land for $20,910 its book value was $18,450.
3. The corporation issued both preferred and common stock during the year.
4. The corporation purchased land during the year for $72,477.75

Required:

1. Prepare a cash flow statement for the year ended December 31, 2015. [20 marks]
2. Outline the differences between the cash flow statement and the income statement [5 marks]