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Coronado Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have

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Coronado Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Finandal statements of Coronado Industries for 2019 and 2018 are provided below. BALANCE SHEETS 12/31/19 Cash $409000 Accounts receivable 358000 Inventory 383000 Property, plant and equipment $608000 Less accumulated depreciation (319000) 289000 $1439000 12/31/18 $ 192000 216000 482000 $958000 (303000) 655000 $1545000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 176000 351000 361000 217000 334000 $1439000 $ 97000 392000 601000 217000 238000 $1545000 INCOME STATEMENT For the Year Ended December 31, 2019 Sales revenue Cost of sales Gross profit Selling expenses $602000 Administrative expenses 190000 Income from operations $8390000 7150000 1240000 792000 448000 72000 376000 Interest expense Income before taxes Income taxes Net income 98000 $ 278000 1240000 1602000 190000 79.2000 Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net Income 72000 376000 98000 $ 278000 The following additional data were provided he time of sale. The loss on sale was incorrectly charged to 1. Dividends for the year 2019 were $193000 2. During the year, equipment was sold for 241000. This equipment cost $354000 originally a cost of sales. 3. All depreciation expense is in the selling expense category Under the direct method, the total taxes paid $41000 $98000 $58000 $139000

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