Instructions Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20x1 20x2 2 Current assets: Cash $235,500.00 $675,000.00 Accounts receivable $753,000.00 303,000.00 $586,500.00 316,000.00 Inventories 6 Long-term assets: Plant and equipment 2,151,000.00 Accumulated depreciation 2,193,000.00 (1,201,000.00) 992,000.00 (1,291,000.00) 1,443,500.00 Land 10 T heate 3 275500.00 3 881.000.00 Instructions 9 Land 992,000.00 1,443,500.00 10 Total assets $3,275,500.00 $3,881,000.00 11 Current liabilities: Wages payable $700,000.00 $511,000.00 13 Long-term liabilities: 14 Bonds payable 0.00 382,000.00 Mortgage payable 102,500.00 0.00 26 Total Liabilities $802,500.00 $893,000.00 17 Stockholders' equity: 18 Common stock 375,000.00 375,000.00 Paid-in capital in excess of par 282,000.00 282,000.00 Retained earnings 1,816,000.00 2,331,000.00 Total stockholders' equity 2,473,000.00 2,988,000.00 Total Liabilities and stockholders' equity $3,275,500.00 $3,881,000.00 Instructions Swasey Company Income Statement For the Year Ended December 31, 20X2 1 Revenues $3,003,000.00 Gain on sale of equipment 90,000.00 3 Cost of goods sold Depreciation expense (1,914,000.00) (270,000.00) (8,500.00) Interest expense Net income $900,500.00 During the year, Swasey Company sold equipment with a book value of $285,000 for $375,000 (original purchase cost of $465,000). New equipment was purchased. Required: 1. Prepare a statement of cash flows for Swasey for 20X2. 2. Reflect on the relationship between the statement of cash flows and the change in cash. Amount Descriptions Refer to the list below for the exact wording of a label or an amount description within your Statement of Cash Flows. Amount Descriptions Add cost of goods sold Add interest expense Decrease in accounts receivable Decrease in wages payable Decrease in inventories Depreciation expense Gain on sale of equipment Increase in accounts receivable Increase in wages payable Increase in inventories Issuance of bonds payable Loss on sale of equipment Mla ass fa fississatisri+iss St Amount Descriptions Loss on sale of equipment Net cash from financing activities Net cash from investing activities Net cash from operating activities Net decrease in cash Net income Net increase in cash Net loss Payment of dividends Payment of mortgage Purchase of equipment Purchase of land Receipt of dividends Sale of equipment Statement of Cash Flows Shaded cells have feedback Question not attempted. Score: 0/160 Swasey Company Statement of Cash Flows For the Year Ended December 31, 20X2 Cash flows from operating activities: Add (deduct) adjusting items: 10 Cash flows from investing activities: Statement of Cash Flows Shaded cells have feedback, X 10 Cash flows from investing activities: Cash flows from financing activities