Current Year	Prior Year
Balance Sheet
Assets		Current	Prior	Change
	Cash	$50,000	$72,000	-$22,000
	Accounts Receivable	80,000	70,000	$10,000
	Merchandise Inventory	60,000	65,000	-$5,000
	Property and Equipment	110,000	60,000	$50,000
	Less: Accumulated Depreciation	-30,000	-15,000	-$45,000
Total Assets		$270,000	$252,000
Liabilities:
	Accounts Payable	$10,000	$12,000	-$2,000
	Salaries and Wages Payable	2,000	1,000	$1,000
	Notes Payable, Long-Term	50,000	60,000	-$10,000
Stockholders' Equity:
	Common Stock	100,000	80,000	$20,000
	Retained Earnings	108,000	99,000	$9,000
Total Liabilities and Stockholders' Equity		$270,000	$252,000	$18,000
Income Statement
	Sales	$200,000
	Cost of Goods Sold	110,000
	Depreciation Expense	15,000
	Other Expenses	50,000
	Net Income	$25,000
	STATEMENT OF CASH FLOWS-Indirect method
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
Increase in accounts receivable
Increase in inventory
Increase in accounts payable
Decrease in salaries and wages payable
Net cash provided by operating activities
Cash flows from Investing Activities
Cash payments to purchase equipment
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Cash payments on notes payable (long term)
Cash receipts from issuing stock
Net cash provided by financing activities
Net increase in cash during the year
Cash balance, January 1
Cash balance, December 31

Other information from the company's records includes the following:

Bought equipment for cash, $50,000.

Paid $10,000 on long-term note payable.

Issued new shares of common stock for $20,000 cash.

Cash dividends of $16,000 were declared and paid to stockholders.