Compute the missing amounts in the statements. Assume that accounts receivable relate only to credit sales. Assume that accounts payable relate only to credit purchases of inventory. Assume that there were no sales of property and equipment during 2015. Assume that any purchase of property and equipment were made using cash.

BALANCE SHEET - ASSET 2014 2015

Cash ??? 25,000 Marketable Securities 3,000 5,000 Accounts Receivable 12,000 37,000 Merchandise Inventory 52,000 23,000 Prepaid Advertising 15,000 18,000 TOTAL CURRENT ASSETS 92,000 108,000 Property plant and equipment (cost) 175,000 ??? Accumulated Depreciation (35,000) (63,000) Land 15,000 ??? Goodwill ??? 7,000 TOTAL ASSET 258,000 342,000 CURRENT LIABILITIES Accounts payable 12,000 23,000 Wages payable ??? 18,000 Interest payable 6,000 5,000 Dividends payable 3,000 ??? Taxes payable 17,000 12,000 TOTAL CURRENT LIABILITIES 43,000 60,000 Long-term debt ??? 86,000 SHAREHOLDER EQUITY Common stock 150,000 172,000 Retained earnings 23,000 32,000 Treasury Stock (10,000) ??? TOTAL LIABILITIES AND SHAREHOLDER EQUITY 258,000 342,000 INCOME STATEMENT 2015 Sales revenue ??? Cost of sales 123,000 GROSS PROFIT 162,000 EXPENSES: Wages 15,000 Advertising 18,000 Depreciation ??? Goodwill amortization 4,000 TOTAL EXPENSES 65,000 Operating profit 97,000 Interest ??? Income (loss) before taxes 88,000 Tax expense 35,000 NET INCOME 53,000 STATEMENT OF CASH FLOWS 2015 Cash flow from operating activities: Cash collections from customers 260,000 Cash payments for: Inventory ??? Wages (2,000) Taxes ??? Interest (10,000) Advertising ??? NET CASH PROVIDED BY OPERATIONS 104,000 Cash flow from investing activities: (Purchase) sale of property, plant, and equipment (111,000) (Purchase) sale of marketable securities ??? (Purchase) sale of land 11,000 NET CASH PROVIDED BY INVESTING ACTIVITIES (102,000) Cash flow from financing activities: Issue (repayment) long-term debt 34,000 Payment of dividend (45,000) Issuance (repurchase) of common stock ??? (Purchase) sale of treasury stock 2,000 NET CASH PROVIDED BY FINANCING ACTIVITIES 13,000 CHANGE IN CASH ???