Part V: Statement of Cash Flows (40 points) New Brighton Inc.'s comparative balance sheets are presented below: Cash Accounts Receivable Merchandise Inventory Land Buildings and Equipment. Less: Accumulated Depreciation Total Assets Dec. 31, 2009 $ 1,608 2,838 3,624 3,890 28,638 13,092 $27,506 Accounts Payable Salaries Payable Other Short-term Payables Long Term Debt US Bank Long Term Notes Payable Contributed Capital Retained Earnings. Total Liabilities and Owners' Equity Additional information includes the following: $ 1,674 870 228 8,058 1,012 6,112 9,552 $27,506 Jan. 1, 2009 $ 1,074 3,156 3,012 1,782 26,034 11,922 $23,136 S 1,236 822 320 7,714 0 5,016 8,028 $23,136 Change 534 Incr 318 Decr 612 Incr 2,108 Incr 2,604 Incr 1,170 Incr 438 Incr 48 Incr 92 Decr 344 Incr 1,012 Incr 1,096 Incr 1,524 Incr a) Dividends declared and paid during the year were $500. b) New Brighton Inc. sold equipment for $120. The machine originally cost $600 with accumulated depreciation of $510. c) The company acquired land worth of $2,108 in 2009 by issuing stock in the amount of $1,096 and issuing a long-term note payable for $1,012. d) Other short-term payables are related to operating activities. Required: 1. Compute the Net Income of New Brighton Inc. in 2009 (Hint: Consider change in retained earnings). (3 pts) 2. How much gain or loss did the company record for the sale of equipment? Prepare the journal entry for the sale of the equipment. (6 pts) 3. How much depreciation expense did the company recognize in 2009? (Hint: use T-accounts for Building & Equipment and Accumulated Depreciation) (4 pts)

Part V: Statement of Cash Flows (40 points) New Brighton Inc.'s comparative balance sheets are presented below: Dec. 31, 2009 Jan. 1, 2009 Change Cash $ 1,608 $1,074 534 Incr Accounts Receivable 2,838 3,156 318 Decr Merchandise Inventory 3,624 3,012 612 Incr Land 3,890 1,782 2,108 Incr Buildings and Equipment 28,638 26,034 2,604 Incr Less: Accumulated Depreciation 13,092 11,922 1,170 Incr Total Assets $27,506 $23,136 Accounts Payable $1,674 $1,236 438 Incr Salaries Payable 870 822 48 Incr Other Short-term Payables 228 320 92 Decr Long Term Debt - US Bank 8.058 7,714 344 Incr Long Term Notes Payable 1,012 0 1,012 Incr Contributed Capital 6,112 5,016 1,096 Incr Retained Earnings 9,552 8,028 1,524 Incr Total Liabilities and Owners' Equity $27,506 $23,136 Additional information includes the following: Required: a) Dividends declared and paid during the year were $500. b) New Brighton Inc. sold equipment for $120. The machine originally cost $600 with accumulated depreciation of $510. c) The company acquired land worth of $2,108 in 2009 by issuing stock in the amount of $1,096 and issuing a long-term note payable for $1,012. d) Other short-term payables are related to operating activities. 1. Compute the Net Income of New Brighton Inc. in 2009 (Hint: Consider change in retained earnings). (3 pts) 2. How much gain or loss did the company record for the sale of equipment? Prepare the journal entry for the sale of the equipment. (6 pts) 3. How much depreciation expense did the company recognize in 2009? (Hint: use T-accounts for Building & Equipment and Accumulated Depreciation) (4 pts)