Following are the trial balances for NeoGothic Corp. $ Cash Accounts Receivable Investment (Long-term) Building Accum. Depreciation -- Bldg. Equipment Accum. Depreciation -- Equip. Patents Accounts Payable Income Taxes Payable Interest Payable S/T Notes Payable (nontrade) Common Stock Additional Pald-in Capital Retained Earnings 12/31/17 dr Cr 23,000 212,000 - 0 150,000 $ 30,000 90,000 11,000 40,000 123,000 27,000 3,200 96,800 130,000 50,000 44,000 12/31/18 dr cr $ 85,500 241,000 16,000 177,000 $ 34,000 70,000 12,000 37,500 138,000 25,000 1,300 112,700 150,000 60,000 94,000 $ 515,000 $ 515,000 $ 627,000 $ 627,000 During 2018 - Investments consist of common stock of several other companies. The company received $1,400 cash in dividend revenue from the investments in 2018. This amount is included in net income. - The company sold equipment that cost $20,000 and was 40% depreciated for $10,000 cash - The company recorded depreciation expense. (Analyze the change in A/D) - The company constructed an addition to the building. - The company amortized the patent cost with the following entry: Amortization Expense 2.500 Patent - The company paid $85,000 (principal) on its short-term nontrade notes payable during the year, and paid in cash a total of 57,200 in interest expense incurred during the year. (This last point is a trick the $7,200 does not get put on the worksheet. Why might that be so?) - The company issued 8,000 shares of its $2.50 par value common stock for $3.75 per share -Dividends of $5,000 were declared and paid -Net income for the year ended December 31, 2018, totalled $55,000. 2.500 INSTRUCTIONS: Complete the cash flow worksheet for NeoGothic for the year ended December 31, 2018 NeoGothic Corp Cash Flow Worksheet For the Year Ended December 31, 2018 Adjustments dr DEBITS Cash cr AR Investment Building Equipment Patents Balance 12/31/17 23,000 212.000 0 150,000 90,000 40,000 515,000 Balance 12/31/18 85,500 241,000 16,000 177,000 70,000 37,500 627,000 CREDITS AD -Building AD - Equipment AP Income Taxes Payable Interest Payable SIT Notes Payable (nontrade) Common Stock Additional Paid-In Capital 30,000 11,000 123,000 27,000 3.200 98,800 130,000 50,000 44,000 515,000 34.000 12,000 138,000 25,000 1,300 112.700 150,000 60,000 94,000 627,000 RE Cash Flows from Operating Activities 0 o to Significant Noncash Transactions 0