For the Year Ended December 31, 2018 7 Revenues 8 Gain on Sale of Land Total Revenues $ 1,950,000 4.000 1.954.000 $ 1.200.000 605,000 11 Expenses: 12 Cost of goods sold Operating expenses 14 Depreciation expense 15 Interest expense 16 Income tax expense 17 Total expenses 18 Net Income 23.000 24000 70.000 S 1.922.000 32.000 Yellow Company Balance Sheets December 31 2018 2017 Difference $ $ 144.000 90.000 151.000 80.000 150.000 4.000 135.000 6.000 25 Assets 26 Current Assets: Cash 28 Accounts receivable 29 Inventory 30 Prepaid rent 31 Long-Term Assets: Investment in stock 33 Land 34 Equipment 35 Accumulated depreciation 36 Total Assets 32 175,000 210.000 230,000 (128.000) 872.000 100.000 200.000 210,000 (105.000 840.000 $ $ $ 30,000 4,000 21,000 88,000 2.000 25,000 38 Liabilities and Stockholders' Equity 39 Current Liabilities: 40 Accounts payable 41 interest payable 42 Income tax payable 43 Long-Term Liabilities 44 Notes payable 45 Stockholders' Equity 46 Common stock 47 Retained earnings 48 Total Liabilities and Equity 245,000 225,000 350,000 222.000 872 000 300,000 200.000 $ 840.000 $ $ 75,000 50 Additional information for 2018: 51 1. Purchase additional investment in stocks 52 2. Soll land: 53 Selling price 54 Original cost 55 3. Purchase equipment on three-year note 56 4. Declare and pay cash dividend 57 5. Issued common stock $ $ $ 54,000 50.000 20.000 10.000 50.000 W19 Yellow Company Statement of Cash Flows For the Year Ended December 31, 2018 10 Cash Flows from Operating Activities 11 Net income 12 Adjustments for noncash effects: 13 Depreciation expense 14 Gain on sale of land 15 Decrease in accounts receivable 16 Increase in inventory 17 Decrease in prepaid rent 18 Decrease in accounts payable Increase in interest payable 20 Decrease in income tax payable Net cash flows from operating activities 19 22 23 Cash Flows from Investing Activities 24 Cash paid for investment in stocks 25 Cash received from sale of land 26 Net cash flows from investing activities 27 28 Cash Flows from Financing Activities 29 Cash received from issuance of common stock 30 Payment of cash dividends 31 Net cash flows from financing activities 32 Net increase (decrease) in cash 33 Cash at the beginning of the period 34 Cash at the end of the period 35 36 Note: Noncash Activities 37 Purchase equipment issuing a note payable 38 Yellow Company Data SCF +