Parties, Inc. Balance Sheets For the years ended 12/31/x3 and 12/31/x2 Ending 12/31/x3 Beginning 12/31/x2 Change ASSETS Cash 160,000 35,000 Accounts receivable 74,000 50,000 125,000 24,000 Inventory 10,000 40,000 -30,000 Equipment 80,000 80,000 Less Accumulated Depreciation -30,000 -10,000 Intangible assets 24,000 25,000 Total Assets 318.000 220.000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable 13,000 5,000 8,000 Unearned revenue 25,000 20,000 5,000 Notes payable (non-current) 40,000 0 Common stock ($5 par) 25,000 25,000 Paid in capital in excess of par 5,000 5,000 Retained earnings 210,000 165,000 Total Liabilities and Stockholders' Equity 318.000 220.000 a. Net income is $50,000. b. Depreciation expense is $20,000. Step 1 No Step 2 Step 3 c. Amortization expense is $1,000 d. Received $40,000 from new note payable e. Cash dividends are $5,000. There is no operating step two because there is no sale in this problem. Parties, Inc. Statement of Cash Flows For the year ended 12/21/20x3 OPERATIONS Net income Add Depreciation expense Amortization expense Schedule of changes in CA and CL Accounts receivable Inventory Accounts payable Unearned revenue Cash Provided by Operations INVESTING ACTIVITIES Cash by Investing Activities FINANCING ACTIVITIES Cash by Financing Activities Net Change in Cash Add Beginning Cash Ending Cash 35,000 160,000