Byron Manufacturing

Balance Sheets

As of December 31, 20Y8 and 20Y7Assets20Y820Y7Current assets:Cash5,3509,280Accounts receivable10,5009,000Inventory19,95018,550Total current assets35,80036,830Property, plant, and equipmentBuilding494,000494,000Equipment279,000272,800773,000766,800Accumulated depreciation(147,400)(120,850)Net property, plant, and equipment625,600645,950Total assets661,400682,780Liabilities and EquityCurrent liabilities:Accounts payable55,31036,180Salaries payable9,36011,740Income taxes payable1,0709,960Total current liabilities65,74057,880Long-term liabilities:Bonds payable355,000397,000Equity:Common stock185,000150,000Retained earnings55,66077,900Total equity240,660227,900Total liabilities and equity661,400682,780

Byron Manufacturing

Statement of Cash Flows

For the Year Ended December 31, 20Y8Cash flows from operating activities: Net income$ Adjustments to reconcile net income to

net cash flow from operating activities: Depreciation expense$ Increase

in accounts receivable(1,500) Increase

in inventory Increase

in accounts payable19,130 Decrease

in salaries payable Decrease

in income taxes payable(8,890)31,510Net cash provided by operating activities$ 34,430Cash flows from investing activities: Purchase of equipment$ (6,200)Net cash used for investing activities(6,200)Cash flows from financing activities: Proceeds from issuance of bonds payable$ Retired bonds payable(91,670) Issued common stock Payment of dividends(25,160)Net cash used for financing activities(32,160)Net increase (decrease) in cash$Cash, 1/1/20Y8Cash, 12/31/20Y8$