Magic GMBA $3$ Corporation $??$

Income Statements

For the Years Ended December $31,2020$ and $2019$

$20202019$

$ $

Operating revenues$-$ Note $11,046,400972,000$

Less: Cost of goods sold $484,000480,000$

Gross Profit $562,400492,000$

Operating expenses

Selling and administrative expenses $184,000200,000$

Depreciation expense $40,00040,000$

Other expense $80,00064,000$

Bad debt expense $4,0003,600$

Rent expense $80,00080,000$

Operating expenses $388,000387,600$

Net income from operations $174,400104,400$

Inventory loss $(40,000)$

Interest expense $(35,736)(35,392)$

Income before tax $98,66469,008$

Income tax expense $(40,000)(24,000)$

Net income $58,66445,008$

Note $1$: Operating revenue includes $$84,600$ gain on disposal of plant assets and other similar items.Magic GMBA $3$ Corporation $??$

Balance Sheets

December $31,2020,$ and $2019$

ASSETS $20202019$

$ $

Cash $113,880469,408$

Accounts receivable $360,000280,000$

Less: Allowance for bad debts $(4,800)(4,400)$

Inventory $440,000360,000$

$$Total current assets $909,0801,105,008$

Long term investment $95,60087,200$

Property, plant, and equipment $752,000400,000$

Less: Accumulated depreciation $(152,000)(160,000)$

Goodwill $120,000$

$$Total assets $1,724,6801,432,208$

LIABILITIES AND SHAREHOLDERS$$ EQUITY

Liabilities

Accounts payable $128,00065,600$

Accrued payables $112,00048,000$

Unearned revenues $-64,000$

$$Total current liabilities $240,000177,600$

Other long term liability$-$ pension $58,71242,712$

Bonds payable $400,000400,000$

Less: Discount on bonds payable $(38,944)(42,680)$

Deferred income tax $25,24025,568$

$$Total Liabilities $685,008603,200$

Shareholders$$ equity

Preferred stock $400,000400,000$

Common stock $40,00040,000$

Additional paid$-$in capital $480,000440,000$

Retained earnings $263,672253,008$

Less: Treasury stock $(144,000)(304,000)$

$$Total shareholders$$ equity $1,039,672829,008$

$$Total liabilities and shareholders$$ equity $1,724,6801,432,2081-$Prepare a cash flows statement for the operating activities investing activities and financial activities for the year