only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest 5 appearance of the data in your formulas, usually the Given Data section 6 DATA 7 Abrahams Manufacturing Company Balance Sheet: 2017 2018 9 Cash $89,000 $100,000 10 Accounts receivable 64,000 70,000 11 Inventory 112,000 100,000 12 Prepaid expenses 10,000 10,000 13 Total current assets 275,000 280,000 14 Gross plant and equipment 238,000 311,000 15 Accumulated depreciation (40,000) (66,000) 16 Total assets $473,000 $525,000 17 18 Accounts payable $85,000 $90,000 19 Accrued liabilities 68.000 63.000 20 Total current debt 153,000 153,000 21 Mortgage payable 70,000 22 Preferred stock 120,000 23 Common stock 205,000 205,000 24 Retained earnings 45,000 47,000 25 Total debt and equity $473,000 $525,000 26 27 Abrahams Manufacturing Company Income Statement: 28 2018 29 Sales $184,000 30 Cost of goods sold 60,000 31 Gross profit $124,000 32 Selling, general, and administrative expenses 44.000 33 Depreciation expense 26,000 34 Operating income $54,000 35 Interest expens 4.000 36 Earnings before taxes $50,000 37 Taxes 16,000 38 Preferred stock dividends 10.000 39 Earnings available to common shareholders $24,000 40 41 Common stock dividends paid during 2018 $22,000 4235 Interest expens 4.000 36 Earnings before taxes $50,000 37 Taxes 16.000 38 Preferred stock dividends 10.000 39 Earnings available to common shareholders $24.000 40 41 Common stock dividends paid during 2018 $22,000 42 43 SOLUTION 44 Abrahams Manufacturing Company Statement of Cash Flows: 45 Cash Flow from Operating Activities 46 Net Income 47 Adjustments 48 Depreciation 49 Increase in accounts receivable 50 Decrease in inventory 51 Increase in account payable 52 Decrease in accrued liabilities 53 Net cash provided by operating activities 54 Cash Flow from Investing Activities 55 Increase in gross fixed assets 56 Cash Flow from Financing Activities 57 Decrease in mortgage payable 58 Increase in preferred stock 59 Preferred stock dividends 60 Common stock dividends 61 Net cash provided by financing activities 62 Net increase in cash 63 Beginning cash 64 Ending cash 65 66 Requirements