Chapter 12, Statement of Cash Flows SWEET COMPANY Comparative Balance Sheet Accounts December 31, Year 1 and Year 2 Debit Accounts Cash and cash equivalents Accounts receivable Merchandise inventory Investments (long-term) Land Buildings Machinery Totals December 31 Year 1 Year 2 $ 34,000 $ 35,500 76,000 52,000 25,000 35,000 37,500 20,500 20,000 41,500 46,000 67,500 18.000 30,000 $256,500 $ 282.000 Credit accounts Accumulated depreciation-buildings Accumulated depreciation-machinery Accounts payable Salaries payable Bonds payable Common stock Retained earnings Totals $ 9,000 $ 13,500 5,600 32,000 2,300 24,500 7,000 4,900 70,000 35,000 137,000 157,000 6.700 34.000 $ 256,500 $ 282,000 Sales Cost of goods sold Gross margin on sales Operating expenses: Salaries expense Income Statement For the year ended December 31, Year 2 Depreciation expense-buildings Depreciation expense-machinery Total operating expenses Net operating income Other expenses Interest experise Loss on sale of machinery Total other expenses Income before tax expense income tax expense Net income Additional Information fall occurred during Year 2) Sold long-term investments that cost $17,000 for $17,000 cash b Made additional purchases of land during the year for cash $ 32,000 4,500 4.800 $ 4,400 1,000 $ 275,000 165,000 110,000 41,300 $ 68,700 5,400 $ 63,300 20.000 $ 43.300 Made additional purchases of buildings during the year for cash. Made no sales of buildings d. Sold machinery that cost $7,500, on which $1,500 depreciation had accumulated, for $5,000 L E h Purchased additional machinery costing $19,500 for cash Depreciation expense on buildings was $4,500 and on machinery was $4,800, Retired bonds payable in the amount of 535,000 at face value for cash Sold additional shares of common stock for $20,000. Paid cash dividends in the amount of $16,000. Prepare a statement of cash flows for Year 2 using the indirect method.