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Please answer showing all working! Question#4 The LeBlanc Saxophone Company, Inc. Comparative Balance Sheet December 31, 2017 and 2016 Assets 70,000 35,000 82,000 120,000 19,000
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Question#4 The LeBlanc Saxophone Company, Inc. Comparative Balance Sheet December 31, 2017 and 2016 Assets 70,000 35,000 82,000 120,000 19,000 80,000 310,000 (65,000) (60,000) $616,000 $500,000 Cash S3,000 132,000 25,000 65,000 Accounts receivable 3 Inventories Prepaid expenses Investments Plant assets 250,000 Accumulated depreciation Total Liabilities and Stockholders' Equity 85,000 75,000 24,000 150,000 170,000 Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 22,000 130,000 245,000 $616,000 $500,000 LeBlanc Saxophone Company, Inc. Income Statement For the Year Ended December 31, 2017 Sales $480,000 Less: Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Interest expense Loss on sale of investments. $290,000 72,000 5,000 13,000 8,000 Income tax expense Net income 15,000 403,000 27,000 Additional information: 1. No plant assets were sold in 2017. 2. Investments costing $30,000 were sold and additional investments were purchased for $45,000 3. Bonds were redeemed at their face value. 5. Accounts payable pertain to inventory purchases from vendors. Required On the following two pages: 1. Prepare a statement of cash flows for the year using the indirect method. 2. Next, prepare only the operating activities section using the direct methodStep by Step Solution
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