Hines Music Company to prepare a statement of cash flows using the for the year ended June 30, 20x2. Hines Music Company Income Statement For the Year Ended June 30, 20x2 Net sales Less expenses $700,000 Cost of goods sold Depreciation expense Administrative expenses Selling expenses Loss on sale of investment $400, 000 40,000 104,000 70,000 Income before Income taxes Net income income taxes Hines Music Company Comparative Balance Sheets June 30, 20x2 and 20x1 20x1 20x2 Assets s 9, 00030,000 70,000 80,000 100,000 Cash Accounts receivable (net) 5, 000 6,000 Inventory 40,000 50,000 160,000 80,000 (40,000) 24,000 $325, 000 $296,000 Prepaid expenses Long-term investments Plant and equipment Accumulated depreciation $ 4,00O 12,000 520 Total assets Liabilities 440 1,560 40,000 Accounts payable Wages payable 1,480 24,00O Income taxes payable $ 46,000 38,000 Notes payable Total1iabilities Stockholders'Equity $116,000 $130,000 163,000 128,000 $279,000 $258,000 Common stock Retained earnings Total stockholders equity Total liabilities and stockholders' equity