Gain on sale of PP&E 2,500 2,900 Total other income and expenses Income before income taxes $ 219,900 65,970 Less: Income tax expense $ 153,930 Net income Liabilities Current liabilities: 36,000 Accounts payable (inventory purchases) Wages payable Interest payable 58,000 $ 16,500 1,900 56,970 6,000 17,800 900 13,500 3,600 Income taxes payable Other accrued expenses payable Total current liablities 139,370 $ 71,800 Long-term liabilities 60,000 23,000 Total liabilities $ 199,370 $ 94,800 Stockholders' equity Common stock $ Retained earnings 605,000 $ 619,630 1,224,630 $ 605,000 470,200 1,075,200 $ Total stockholders' equity $ 1,424,000 $ 1,170,000 Total liabilities and equity Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and for net cash outflows.) Griffin Industries, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities Investing Activities: Net cash provided by (used for) investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash, beginning of the year Cash, end of the year Balance Sheets 0 Income Statement hce sh Griffin Industries, Inc. Griffin Industries, Inc. Income Statement For the Year Ended December 31, 2017 as hg the Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Sales revenues $ 959,000 383,000 Current assets: Cash $ 576,000 Less: Cost of goods sold Gross profit Less operating expenses: Salaries and wages expense Accounts receivable Inventory 475,000 $ 75,000 328,000 7,000 291,000 128,000 213,000 6,000 Prepaid insurance Insurance expense 194,000 14,500 56,700 88,000 Total current assets $ 885,000 $ 638,000 Depreciation expense Other operating expenses 353,200 Property, plant, and equipment Less: Accumulated depreciation Total operating expenses Operating income Plus other income and less other expenses: $ 222,800 605,000 $ (155,000) 89,000 1,424,000 $ 565,000 (107,000) 74,000 1,170,000 Investments $ Interest expense $ Total assets 5,400 2,500 Gain on sale of PP&E Print Print Done Done Additional information Additional information follows: a. Sold plant asset for $3,900. The original cost of this plant asset was $10,100 and it had $8,700 of accumulated depreciation associated with it. b. Paid $4,000 on the bonds payable; issued $41,000 of new bonds payable. c. Declared and paid cash dividends of $4,500. d. Purchased new investment for $15,000. Paid cash. e. Purchased new equipment for $50,100. Paid cash. Print Done