HOW TO Prepare a Statement of Cash Flows for year end Later Year using all the information below including the ADDITIONS INFORMATION.

Arma Inc.

Comparative Balance Sheets

December 31, 20XX and 20YY

Assets Later Year Earlier Year

Cash $ 90,800 $ 48,400

Accounts Receivable 92,800 33,000

Inventories 112,500 102,850

Prepaid Expenses 28,400 2,6000

Investments 138,000 114,000

Plant Assets 270,000 242,500

Accumulated Depreciation (50,000) (52,000)

Total $ 682,500 $ 491,350

Liabilities & Stockholders' Equity

Accounts Payable $ 112,000 $ 67,300

Accrued Expenses Payable 16,500 17,000

Bonds Payable (Long Term) 110,000 150,000

Common Stock 220,000 175,000

Retained Earnings 224,000 105,450

Total $ 682,500 $ 514,750

Arma Inc.

Income Statement

For Year Ending Later Year

Sales $ 392,780

Less:Cost of Goods Sold $ 135,460

Operating Expenses except Depr 12,410

Depreciation Expense 46,500

Income Tax 27,280

Loss on Sale of Plant Assets 7,500

Interest Expense 4,730 233,880

Net Income $ 158,900

Additional Information:

1. New Plant Assets costing $85,000 were purchased for cash during year

2. Investments were bought at cost of $24,000.

3. Plant assets costing $57,500 were sold for $1,500 resulting in the gain.

4. A cash dividend of $40,350 was declared and paid during the year.

5. We had extra cash, so we paid $40,000 of bonds at face value