Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December 31, 20X4 and 20X3 Lincoln Corp. - - Income Statement as of December 31st, 20X4 Revenue $5,000 Cost of Goods Sold $3,200 Gross Profit $1,800 Operating expenses $1,350 Operating Profit $ 450 Loss on sale of equipment $ 20 Income tax expense $ 180 Profit for 2012 $ 250 Lincoln Corp. - Balance Sheet - Assets: Cash Accounts Receivable Inventory Prepaid expenses Equipment Accumulated Depreciation Total Assets Liabilities & Shareholders' Equity Accounts Payable December 31 20X4 20X3 $ 2,350 450 $ 1,800 800 1,000 700 40 80 2,500 1,500 (1,350) (1,000) $ 4,790 $ 4,080 680 350 Operating expenses payable 210 100 Income Taxes Payable 120 0 Dividends Payable 50 100 Long term notes Payable 300 70 Common Shares 2,500 2,500 Retained Earnings 930 960 Total Liabilities & Shareholders' Equity $ 4,790 $ 4,790 Additional Information for Lincoln Corp: 1) Operating expenses for 20X4 included depreciation for $500 2) Accounts payable relate exclusively to the purchase of inventory 3) Machine with a historical cost of $200 was sold at a loss of $20 4) A new machine was purchased during the year for $1,200 5) Dividends were declared 6) Long term notes payable were issued The total "Net Cash provided (used) by Financing Activities when using the direct method is: