JED COMPANY Comparative Balance Sheets FYE 12/31 Increase Assets Cash Accounts receivable Inventory Equipment Less: Accum depr-equipmt Total 2018 92,000 71,000 70,000 2017 (Decrease 94,000 (2,000) 8,000 45,000 25,000 (3,000) (32,000)58,000 (3,000) $260,000 20,000 63,000 87,000 90,000 (40,00047,000 $280,000 Liabilities and Stockholders Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 68,000 57,000 32,000 56,000 67,000 $280,000 4,000 3,000 26,000 6,000 0 60,000 7,000 $260,000 20,000 64,000 54,000 56,000 JOHNSTON COMPANY Income Statement FYE 12/31/2018 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $360,000 265,000 95,000 54,000 41,000 6,000 35,000 11,000 24,000 Additional data 1. Dividends of $17,000 were declared and paid 2. During the year equipment was sold for $14,000 cash. This equipment cost $16,000. 3. All depreciation expense, $10,000, is in the operating expenses. 4. All sales and purchases are on account. 5. Additional equipment was purchased for $13,000 cash. Further analysis reveals the following 1. Accounts payable pertains to merchandise creditors 2. All operating expenses except for depreciation are paid in cash. JED Company Statement of Cash Flows FYE 12/31/2014 Cash Flows from operating activities Net cash provided by (used by) operating activities Cash Flows from investing activities Net cash provided by (used by) investing activities Cash flows from financing activities Net cash provided by (used by financing activities Net increase (decrease) in cash Cash at beginning of year Cash at end of year Computations (1) Citih rtnipis min tr.inni"ni Cash receipts from customers (2) Cash payments to suppliers Cash payments to suppliers (3) Cash payments for income taxes Cash payments for income taxes