Fall 2016 Student Name Balance sheet Income statement Sales Cost of goods sold Gross profit Current year $ 900,000 700,000 200,000 Cash Accounts receivable Inventory Prepaid rent Total current assets Equipment, at cost Less: Accum. depreciation Net book value of equipment Total assets End of Beginning year of year Change $ 70,000 $ 47,000 $ 23,000 121,000 107.000 14,000 85,000 94,000 (9,000) 14,000 18,000 4,000) 290,000 266,000 24,000 275.000 210,000 65,000 (80,000) (68,000) (12.000) 195,000 142.000 53,000 $ 485,000 $ 408,000 $ 77,000 135.000 65,000 Operating expenses Income from operations Other income & (expense): Interest expense Interest income Loss on sale of equipment Total other income (expense) Income before taxes Income tax expense Net income (12,500) 2,000 (4,500) (15,000) 50.000 20,000 $ 30,000 Accounts payable Interest payable Total current liabilities Notes payable Total liabilities Common stock Retained earnings Total S.H. equity Total liabilities & equity $ 65,000 $ 81,000 $(16,000) 7,000 4,000 3.000 72,000 85,000 (13,000) 230,000 176,000 54,000 302.000 261.000 41.000 80,000 65.000 15.000 103.000 82,000 21,000 183,000 147,000 36,000 $ 485,000 $ 408,000 $177.000 Additional Information: Depreciation expense of $25,000 is included as part of operating expenses. Equipment that originally cost $22,000 with accumulated depreciation of $13,000 was sold during the year for cash. The company also had $70,000 of new borrowing during the year. Prepare only the Cash Flows from Operating Activities section of the statement of cash flows by following the INDIRECT method based on the balance sheets and income statement shown above. Alate. Varm RA and Health hlanke in the famnata hai