GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information. ECO BUILD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 pok sk $ 113,700 70, e 71,000 4,80e 259, see 144,000 (36,889) $ 367,500 $ 75,000 55, eee 98, Bee 6,000 234, eee 133,000 (12,eee) $ 355,000 int Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, ss par value Retained earnings Total lisbilities and equity rences $ 34,00 6,00 4. See 14,500 45.000 89,500 $ 42, cee 16, eee 5, ee 63,80 90.000 153,000 150,00 228.vee 58,00 $367,500 $ 355,000 TONIFI Common STOCK par value Retained earnings Total liabilities and equity ZZ0000 58,000 $367,500 160,000 42,000 $ 355,000 ECO BUILD INCORPORATED Income Statement For Year Ended Dune 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 65,000 Other expenses 73,000 Total operating expenses $ 757, eee 463, see 294, eee $ 138,wee 156,00 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,700 258,700 48,580 $ 110,120 Additional Information a. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for b. The only changes affecting retained earnings are net Income and cash dividends pald. c. New equipment is acquired for $64.000 cash d. Received cash for the sale of equipment that had cost $53,000, yleiding a $2.700 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statem 1. All purchases and sales of inventory are on credit ECO BUILD INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: ECOBOACINCO DNTED Statement Flow Indirect Method For Year Ended June 30, 2019 Cash flows from operating activities: + Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities