December 31 Change in Assets/Liabilities/Equity excluding Cash - Trend Analysis Assets 2019 2018 Cash Accounts Receivable Inventory Total Current Assets $20,000 $14,000 $35,000 $20,000 $28.000 $83,000 $20.000 $54,000 Property Plant & Equipment Land $0 Equipment Accumulated Depreciation Total PPRE $0 $60,000 -$32,000 $28,000 $78,000 -$24,000 $54,000 Total Assets $111,000 $108,000 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Income Tax Payable $19,000 $7,000 $15,000 58.000 D E F G H Accounts Payable Income Tax Payable Total Current Liabilities $19,000 $7,000 $15,000 $8,000 $23,000 $26,000 Long Term Liabilities Bonds Payable $17,000 $33,000 $14,000 Equity Common Stock Retained Earnings Total Equity $18,000 $50,000 $68,000 $38,000 $52,000 Total Liabilties & Equity $111,000 $108,000 Additional Information Net Income for 2022 was Depreciation expense was $32,000 $17,500 2 3 4 5 16 57 During the year equipment with a book value of 18,000 was sold for $8,500 cash, The accumulated depreciation on the equipment was $9,500 Cash Dividends of $20,000 was declared & paid Bonds payable for $16,000 was redeemed for cash $16,000 Common stock was issued for $4,000 58 59 PREPARE IN GOOD FORM STATEMENT OF OPERATINGS Wamer Company Statement of Cash Flow For the year ending December 31, 2019 Cash Flow from Operations Net Income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Change in Current Assets/Current Liabilities Accounts Receivable Inventory Prepaid Expenses Income Tax Payable Accounts Payable $0 $0 Net Cash provided by Operating Activities 2 3 15 Cash Flow from Investing Activities Sale of Equipment Net Cash provided by Investing Activities $0 36 73 74 75 75 Depreciation expense Change in Current Assets/Current Liabilities Accounts Receivable Inventory Prepaid Expenses Income Tax Payable Accounts Payable 78 79 80 81 $0 Net Cash provided by Operating Activities 82 $0 85 Cash Flow from Investing Activities Sale of Equipment Net Cash provided by investing Activities 86 $0 88 69 90 Cash Flow from Financing Activities Issuance of Stock Redemption of Bonds Payment of Cash Dividend 91 92 $0 SO 94 Net Cash Flow $0 95 96 Cash at the beginning of the year $20,000 97 Cash at end of the year $20,000