Income Statement For the year ended December 31, 2019 Revenues: $582,500 285.000 $297,500 153,150 Sales Cost of goods sold Gross profit Operating expenses, including depreciation expense Loss on sale of equipment Income before taxes Income tax expense Net Income 5.125 139,225 24,250 $114.975 Additional information on year 2019 transactions 1. Sold equipment costing $46,875, with accumulated depreciation of $30,125. 2. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance Required Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any non-cash investing and financing activities in a note at the bottom of your statement of cash flows. Based on the cash flow statement you just prepared, write a short paragraph and discuss (a) their quality of income; (b) why cash flows from operating activities is different than net income, (c) what was their major source of cash and what did they do with their cash; (d) what other sources and uses of cash did they have and (e) what happened to cash at the end of the year? Prepare your answers to this question on a sheet of paper to be included in scanned answers TTT Arial 3 (12pt) TEE-SHOES - 1 17 QUESTION 29 Young Athletic Company, a merchandiser, recently completed its calendar-year 2019 operations. Young Athletic Company's balance sheets and income statement follow: December 31, 2019 2018 Assets Cash $ 73,500 50,625 251,800 $ 79,800 65,810 275,656 1,250 157,500 (36.625) $543,391 Accounts receivable Merchandise Inventory Prepaid Expenses Equipment Accumulated depreciation Total Assets 1,875 108,000 (46,000) $439,800 Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common Stock $114,675 6,000 $83,141 10,000 65,000 200,250 48,750 150,250 120.125 $439,800 Retained earnings Total liabilities and equity 185,000 $543,391 Young Athletic Company