Income Statement

Net Sales $2,600,000

Gain on Sale of Land 7,000

Total Revenue $2,607,000

Expenses:

Cost of Good Sold $1,650,000

Operating Expense 615,000

Depreciation Expense 33,000

Interest Expense 34,000

Income Tax Expense 80,000

Total Expense $2,412,000

Net Income $195,000

Balance Sheets 2024 2023

Assets

Current Assets

Cash $409,500 $343,800

Accounts Receivable 64,000 80,000

Inventory 160,000 145,000

Prepaid Rent 4,600 7,200

Long-Term Assets

Investments 205,000 110,000

Land 215,000 270,000

Equipment 250,000 220,000

Accumulated Depreciation (143,000) (110,000)

Total Assets $1,165,100 $1,066,000

Liabilities and Stockholder Equity

Current Liabilities

Accounts Payable 35,000 98,000

Interest Payable 5,100 4,000

Income Tax Payable 25,000 29,000

Long-Term Liabilities

Notes Payable 265,000 235,000

Stockholders Equity

Common Stock 460,000 400,000

Retained Earnings 375,000 300,000

Total Liabilities and Stockholders Equitey $1,165,100 $1,066,000

Additional Information for 2024:

Purchased additional investment in stocks for $95,000.

Sold land for $62,000. The land originally was purchased for $55,000, resulting in a $7,000 gain being recorded at the time of the sale.

Purchased $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $120,000.

Issued common stock for $60,000.

Prepare Statement of Cashflows using Direct Method

Prepare a note section to reconcile Net Income to Net Operating Cashflows using Indirect method