J. Briggs Inc. Income Statement For years ended December 31, 2017 and 2018 Sales (all on credit) Cost of goods sold Gross margin 2018 2017 $561,000 $505,000 (330,000) (271,000) 231,000 234,000 J. Briggs Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change Current assets: Cash $66,690 $43,100 $23,590 Accounts receivable (net) 46,000 38,000 8,000 Inventory 50,000 48,000 2,000 Prepaid expenses 1,400 3,000 -1,600 Other current assets 1,900 2,900 1,000 Total current assets 165,990 135,000 30,990 38,000 53,000 120,000 100,000 Depreciation expense Other operating expenses Total operating expenses Operating income 158,000 153,000 73,000 81,000 Long-term Investments 89,000 62,000 27,000 Plant assets 314,000 263,000 51,000 (5,100) (3,800) (80,400) (53,000) 27,400 Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) Less: accumulated depreciation Total plant assets 5,800 4,100 233,600 210,000 23,600 (3,000) (3,600) Total assets 488,590 407,000 81,590 (13,900) (3,300) Total other income (expenses) (13,900) (3,300) Current liabilities: Accounts payable $32,000 $-700 Income before income taxes Income taxes expense Net income 70,700 77,700 (21,210) (23,310) $49,490 $54,390 Accrued liabilities Income taxes payable Total current liabilities $31,300 7,200 1,600 40,100 6,000 6,000 44,000 1,200 -4,400 -3,900 Long term liabilities: Notes Payable Total liabilities 256,000 296,100 190,000 66,000 234,000 62,100 J. Briggs Inc. Statement of Retained Earnings For the year ended December 31, 2018 2018 2017 Ret. earnings, Jan. 1 $35,000 $0 Add: net income 49,490 54,390 Deduct: Dividends (30,000) (19,390) Increase in retained 19,490 35,000 earnings Ret. earnings, Dec. 31 $54,490 $35,000 110,000 110,000 O 28,000 28,000 0 Stockholders' equity Common stock, $5 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 54,490 192,490 35,000 19,490 173,000 19,490 $407,000 $81,590 $488,590 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 22,000 $2.25 $1.36 $15 22,000 $2.47 $0.88 $13 J. Briggs Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operations: J. Briggs Inc. Income Statement For years ended December 31, 2017 and 2018 Sales (all on credit) Cost of goods sold Gross margin 2018 2017 $561,000 $505,000 (330,000) (271,000) 231,000 234,000 J. Briggs Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change Current assets: Cash $66,690 $43,100 $23,590 Accounts receivable (net) 46,000 38,000 8,000 Inventory 50,000 48,000 2,000 Prepaid expenses 1,400 3,000 -1,600 Other current assets 1,900 2,900 1,000 Total current assets 165,990 135,000 30,990 38,000 53,000 120,000 100,000 Depreciation expense Other operating expenses Total operating expenses Operating income 158,000 153,000 73,000 81,000 Long-term Investments 89,000 62,000 27,000 Plant assets 314,000 263,000 51,000 (5,100) (3,800) (80,400) (53,000) 27,400 Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) Less: accumulated depreciation Total plant assets 5,800 4,100 233,600 210,000 23,600 (3,000) (3,600) Total assets 488,590 407,000 81,590 (13,900) (3,300) Total other income (expenses) (13,900) (3,300) Current liabilities: Accounts payable $32,000 $-700 Income before income taxes Income taxes expense Net income 70,700 77,700 (21,210) (23,310) $49,490 $54,390 Accrued liabilities Income taxes payable Total current liabilities $31,300 7,200 1,600 40,100 6,000 6,000 44,000 1,200 -4,400 -3,900 Long term liabilities: Notes Payable Total liabilities 256,000 296,100 190,000 66,000 234,000 62,100 J. Briggs Inc. Statement of Retained Earnings For the year ended December 31, 2018 2018 2017 Ret. earnings, Jan. 1 $35,000 $0 Add: net income 49,490 54,390 Deduct: Dividends (30,000) (19,390) Increase in retained 19,490 35,000 earnings Ret. earnings, Dec. 31 $54,490 $35,000 110,000 110,000 O 28,000 28,000 0 Stockholders' equity Common stock, $5 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 54,490 192,490 35,000 19,490 173,000 19,490 $407,000 $81,590 $488,590 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 22,000 $2.25 $1.36 $15 22,000 $2.47 $0.88 $13 J. Briggs Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operations