Jemica Green, controller of Monahan, Inc., has asked you to prepare the company's cash flow statement for the current fiscal year ending December 31. The income statement and balance sheet have been already prepared. These financial statements and the following information are available to you. Equipment was acquired on December 28th of the current year. The equipment was acquired by giving a 180 day note payable for Monahan, Inc. built an addition to their building. The addition was occupied and paid for on January 2nd of the current year. The original building had a useful life of 60 years with no residual value. The addition will last 40 years with no residual value. The addition $ 30,540 $ 17,000 Early in the Monahan, Inc. year the company sold equipment with the following cost and book value. The remaining equipment is being depreciated using straight line depreciation over 8 years with no residual value. Cost Book value Proceeds $ 40,700 4,984 14,900 The leased equipment has a useful life of 10 years and the lesse te is 6 years. The lease was signed and the equipment delivered on December The lease contains an option for Tyler Inc. to buy the equi prior year. end of the lease term for $500. The incremental borrowing rate for Tyler inc83% Thelesssor's implicit interest rate is 7.5%. The annual lease payments are 56,267. Monahan, Inc. invested its idle cash in trading securities. At the beginning of the year its trading portfolio was as follows Security Cost Market Fog & Flame 7.560 7,000 Starbucks 5,040 8,660 Seattle's Best 7,400 9.520 Totals 20,000 25,200 At the end of the current year, its trading portfolio was as follows Security Cost Market Dunkin Donut 8,100 Pizza Hut 5,320 4.340 13,420 4,340 During the first quarter, the company sold all of the trading securities for 523,600 On February 20th of the current vear, Monahan, Inc. purchased Reutel Company $ 156,560 Early in March of the current year, Monahan, Inc. finally sold its sold factory facility, which had not been used for two years. The building and land were sold for S 20,650 REQUIRED Prepare a Cash Flow Statement for the year ending December 31, using the direct approach Aculeted. cnfecrand neckaleet.it masient Make sure use use the direct approac. You might ask yourself whe picked the direct appreach. The exam is due May 4, 2030 at noon. Make sure you do a grint preview to see that it makes sense. Rews and columns shem Net Sales Monahan, Inc. Statements of Income & Retained Earning For the Year Ending December 31, 2019 Cost of goods sold Grom margin (1,367,000.00 614,800.00 752,200.00 Operating expenses Selling &ministrative $30,000.00 Depreciation & Amortization 43,140.00 571,140.00 Operating income (181,060.00 Other Revenue&apena Interest revenas (1,292.00 Gain on sale of trading securiti 0,00.00 Dividend saut 120,060.00 Interest expen 27,900.00 Unesaland gain on trading securities 14.280.00 Gain on sale of equipment 9,916.00 Loss on sale of factory and land 1X750.00 19,562.00 Income before income ta (261,490.00 6248.00 Income tas Net Income Retained eamings, January 1 06,650.00 Dividend Freferred stock Dividend Common stock Retained earnings, December 31 134896.00 (247,546.00 4.306.00 11,300.00 13,406.00 3,10.00 Monahan, Inc Balance Sheet Accowan December 11 Balances Balance SheetAccuan Balances 2019 44.500.00 19.176.00 Tending Se 20.000.00 13,430.00 5.300.00 080.00 Trade Accounts nob 28.046.00 38,480.00 Allowance fee Anbefal accounts 2,400.00 240.00 Trade Notes Receivable 22,400.00 21,000 mentory 112.009.00 121.600.00 Interest receivable 1,040.00 40.00 Propsids 11.300.00 6,500.00 Investment in Reed stock Land $28.000.00 138,000.00 Building 37.342.00 454.340.00 Accumulated degenciation 178,184.00 92480.00 Equipment [16] 132,192.00 Accumulated degencation 30.00 44,396.00 1.304.00 704.00 Accumulated deposciation 47220 Patent 5.000.00 3,528.00 Goodwill 300.00 8.316.00 Land hald har 21.000.00 Dading held for 4.400.00 995.938.00 016900 400.00 Accreditie 9440 4.20 0.00 125-406.20 38.210.00 130,500.00 13200 Attrail pension cost 11540.00 2134000 0000040 2000.25 14520400 560.co k