Create a Cash Flow Statement off of this Income Statement and Other Information for Year 2.

Depreciation Expense and Property, Plant, & Equipment purchase amount are needed as well.

ABC Company's Year 2 Income Statement: Other Information: $ Sales COGS Gross Margin Op. Expenses Op. Income Loss on Disposal Income Before Taxes Taxes Net Income 875,000 495,000 380,000 216,000 164,000 10,000 154,000 35,000 119,000 a. Equipment that had cost 80,000 and on which had 40,000 of accumulated deprec- iation was sold in Year 2 for 30,000 cash. b. Cash dividends of 42,000 were paid in the current year. $ Comparative Balance Sheets for Two (2) Years: Assets Cash A/R Inventory Prepaids Total Current Assets Year 2 27,000 495,000 580,000 10,000 1,112,000 Year 1 35,000 395,000 610,000 15,000 1,055,000 Long Term Investments 120,000 120,000 Property, Plant & Equipment Accum. Depreciation Net Property, Plant & Equipmi 1,870,000 (580,000) 1,290,000 1,510,000 (465,000) 1,045,000 Total Assets $ 2,522,000 $ 2,220,000 Liabilities A/P Accrued Liabilities Total Current Liabilities 620,000 37,000 657,000 580,000 62,000 642,000 Long Term Debt 420,000 300,000 Total Liabilities 1,077,000 942,000 Equity Common Stock Retained Earnings Total Owners' Equity 910,000 535,000 1,445,000 820,000 458,000 1,278,000 Total Liabilities & Equity $ 2,522,000 $ 2,220,000 (202) Chapter 12 Quiz v2.0