Prepare a direct method under Operating activity, Investing activity, and Fiance Activity

and indirect method statement of cash flows

2016 3,250,000.00 (150,000.00) 3,100,000.00 (1,850,000.00) 1,250,000.00 425,000.00 279,800.00 125,000.00 200,000.00 365,000.00 15 Washington Irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 2017 5 Gross sales $ 3,870,250.00 $ 6 Less: Sales returns (1) $ (275,000.00) $ 7 Net sales $ 3,595,250.00 $ 8 Cost of goods sold $ (2,260,890.00) $ 9 Gross profit $ 1,334,360.00 $ 10 Operating expenses: 11 Selling expenses $ 526,800.00 $ General and administrative expenses $ 382,500.00 $ Research and development expenses $ 75,000.00 $ Goodwill impairment $ 60,000.00 $ Depreciation expense $ 425,000.00 $ Amortization expense (leases) $ 60,872.40 $ 17 Bad debts expense $ 24,890.00 $ 18 Total operating expenses $ 1,555,062.40 $ 19 Operating income $ (220,702.40) $ 20 Other income (expense): Interest and dividend revenue $ 159,800.00 $ Gain (loss) on sale of TS investments $ (1,250.00) $ Gain (loss) on sale of property $ (12,500.00) $ Unrealized holding gain (loss) on TS investments $ 12,590.00 $ Interest expense $ (101,287.60) $ 26 Total other income (expense), net $ 57,352.40 $ 27 Income before income taxes $ (163,350.00) $ 28 Income tax expense (benefit) $ (3,972.50) $ 29 Net income $ (159,377.50) $ 30 Other Comprehensive Income 31 Defined benefit plans, net $ (118,900.00) $ 32 Unrealized holding gain (loss) on AFS investments $ 78,650.00 $ 33 Comprehensive income (loss) $ (199,627.50) $ 1,394,800.00 (144,800.00) 126,500.00 21 22 24 165,000.00 18,750.00 (90,650.00) 219,600.00 74,800.00 26,180.00 48,620.00 (135,900.00) 32,500.00 (54,780.00) 35 Washington Irving, Inc. Comparative Balance Sheets As of January 31, 2018 2017 2016 $ $ $ $ $ $ 754,535.50 257,070.00 1,797,510.00 311,700.00 995,090.00 4,115,905.50 $ S $ $ $ S 469,037.50 233 450.00 1488,600.00 339,200.00 1,068,750.00 3,599,037.50 16 $ 12,193,000.00 $205,420.97 $ 3,709,800.00 $ 2,300,000.00 $ 29,562.50 $ 18,437,783.47 $ 22,553,688.97 $ 12,700,000.00 S $ 3,631,150.00 $ 2,360,000.00 $ $ 18,691,150.00 $ 22, 290, 187.50 21 23 24 25 Assets 6 Current Assets: Cash and cash equivalents Accounts receivable (Net) Inventory 10 Notes receivable 11 Investments 12 Total current assets 13 Non-current Assets 14 Property, plant, and equipment (Net) 15 Right-of-use asset Investments 17 Goodwill and intangible assets 18 Deferred income taxes 19 Total non-current assets 20 Total Assets Liabilities and Equity 22 Current Liabilities: Accounts payable Notes payable Income taxes payable Current lease payable 27 Current maturity of long-term debt 28 Total current liabilities 29 Non-current Liabilities 30 Long-term debt (net) 31 Pensions 32 Leases Payable 33 Deferred income taxes Liability - RSU Plan Liability - Potential Additional Tax 36 Total noncurrent liabilities 37 Total Liabilities 38 Common Stock, $0.01 par value 39 Additional paid-in capital 40 Retained earnings 41 Accumulated other comprehensive income (loss) 42 Total Equity 43 Total Liabilities and Equity 230,100.00 280,900.00 3,477.00 $ $ S $ $ $ 242,100.00 258,300.00 72,500.00 256,900.00 829,800.00 $ $ $ $ $ $ 514477.00 34 $ $ $ $ S $ $ $ $ $ S S $ $ 4,574,310.00 $ 4,861,100.00 6,302,590.00 $ 6,151,130.00 132,920.97 $ 51,860.00 $ 47,270.00 50,000.00 $ 21,000.00 $ 11,132,680.97 $ 11,059,500.00 11,962.480.97 $ 11,573,977.00 14,972.50 S 14,897.50 10,906,590.00 $ 10,829,790.00 (158,024.50) S 3,603.00 (172,330.00) S (132,080.00) 10,591,208.00 S 10,716,210.50 22,553,688.97 $ 22,290, 187.50 Washington Irving, Inc. Statements of Equity For the Year Ending January 31, 2017 Common Stock Additional Paid-in Capital 15,000.00 $ 10,860,000.00 $ Accumulated Other Retained Earnings Comprehensive Income (43,267.00) $ (28,680.00) 48,620.00 - $ (103,400.00) - $ 5 Balance at January 31, 2016 6 Net income 7 Other comprehensive income (loss) 8 Issuance of common stock 9 Purchase of common stock 10 Stock-based compensation 11 Cash dividends declared on common stock 12 Balance at January 31, 2017 13 Net income 14 Other comprehensive income (loss) 15 Issuance of common stock 16 Purchase of common stock 17 Stock-based compensation 18 Cash dividends declared on common stock 19 Balance at January 31, 2018 - $ 72.50 $ (175.00) $ - $ - $ 14,897.50 $ 45,240.00 $ (100,450.00) $ 25,000.00 $ - $ (1,750.00) $ 3,603.00 $ (159,377.50) $ 10,829,790.00 (132,080.00) $ $ (40,250.00) - $ 100.00 $ (25.00) $ 62,400.00 $ (10,600.00 $ 25,000.00 $ (2,250.00) $ (158,024.50) $ 14,972.50 $ 10,906,590.00 $ (172,330.00) 2016 3,250,000.00 (150,000.00) 3,100,000.00 (1,850,000.00) 1,250,000.00 425,000.00 279,800.00 125,000.00 200,000.00 365,000.00 15 Washington Irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 2017 5 Gross sales $ 3,870,250.00 $ 6 Less: Sales returns (1) $ (275,000.00) $ 7 Net sales $ 3,595,250.00 $ 8 Cost of goods sold $ (2,260,890.00) $ 9 Gross profit $ 1,334,360.00 $ 10 Operating expenses: 11 Selling expenses $ 526,800.00 $ General and administrative expenses $ 382,500.00 $ Research and development expenses $ 75,000.00 $ Goodwill impairment $ 60,000.00 $ Depreciation expense $ 425,000.00 $ Amortization expense (leases) $ 60,872.40 $ 17 Bad debts expense $ 24,890.00 $ 18 Total operating expenses $ 1,555,062.40 $ 19 Operating income $ (220,702.40) $ 20 Other income (expense): Interest and dividend revenue $ 159,800.00 $ Gain (loss) on sale of TS investments $ (1,250.00) $ Gain (loss) on sale of property $ (12,500.00) $ Unrealized holding gain (loss) on TS investments $ 12,590.00 $ Interest expense $ (101,287.60) $ 26 Total other income (expense), net $ 57,352.40 $ 27 Income before income taxes $ (163,350.00) $ 28 Income tax expense (benefit) $ (3,972.50) $ 29 Net income $ (159,377.50) $ 30 Other Comprehensive Income 31 Defined benefit plans, net $ (118,900.00) $ 32 Unrealized holding gain (loss) on AFS investments $ 78,650.00 $ 33 Comprehensive income (loss) $ (199,627.50) $ 1,394,800.00 (144,800.00) 126,500.00 21 22 24 165,000.00 18,750.00 (90,650.00) 219,600.00 74,800.00 26,180.00 48,620.00 (135,900.00) 32,500.00 (54,780.00) 35 Washington Irving, Inc. Comparative Balance Sheets As of January 31, 2018 2017 2016 $ $ $ $ $ $ 754,535.50 257,070.00 1,797,510.00 311,700.00 995,090.00 4,115,905.50 $ S $ $ $ S 469,037.50 233 450.00 1488,600.00 339,200.00 1,068,750.00 3,599,037.50 16 $ 12,193,000.00 $205,420.97 $ 3,709,800.00 $ 2,300,000.00 $ 29,562.50 $ 18,437,783.47 $ 22,553,688.97 $ 12,700,000.00 S $ 3,631,150.00 $ 2,360,000.00 $ $ 18,691,150.00 $ 22, 290, 187.50 21 23 24 25 Assets 6 Current Assets: Cash and cash equivalents Accounts receivable (Net) Inventory 10 Notes receivable 11 Investments 12 Total current assets 13 Non-current Assets 14 Property, plant, and equipment (Net) 15 Right-of-use asset Investments 17 Goodwill and intangible assets 18 Deferred income taxes 19 Total non-current assets 20 Total Assets Liabilities and Equity 22 Current Liabilities: Accounts payable Notes payable Income taxes payable Current lease payable 27 Current maturity of long-term debt 28 Total current liabilities 29 Non-current Liabilities 30 Long-term debt (net) 31 Pensions 32 Leases Payable 33 Deferred income taxes Liability - RSU Plan Liability - Potential Additional Tax 36 Total noncurrent liabilities 37 Total Liabilities 38 Common Stock, $0.01 par value 39 Additional paid-in capital 40 Retained earnings 41 Accumulated other comprehensive income (loss) 42 Total Equity 43 Total Liabilities and Equity 230,100.00 280,900.00 3,477.00 $ $ S $ $ $ 242,100.00 258,300.00 72,500.00 256,900.00 829,800.00 $ $ $ $ $ $ 514477.00 34 $ $ $ $ S $ $ $ $ $ S S $ $ 4,574,310.00 $ 4,861,100.00 6,302,590.00 $ 6,151,130.00 132,920.97 $ 51,860.00 $ 47,270.00 50,000.00 $ 21,000.00 $ 11,132,680.97 $ 11,059,500.00 11,962.480.97 $ 11,573,977.00 14,972.50 S 14,897.50 10,906,590.00 $ 10,829,790.00 (158,024.50) S 3,603.00 (172,330.00) S (132,080.00) 10,591,208.00 S 10,716,210.50 22,553,688.97 $ 22,290, 187.50 Washington Irving, Inc. Statements of Equity For the Year Ending January 31, 2017 Common Stock Additional Paid-in Capital 15,000.00 $ 10,860,000.00 $ Accumulated Other Retained Earnings Comprehensive Income (43,267.00) $ (28,680.00) 48,620.00 - $ (103,400.00) - $ 5 Balance at January 31, 2016 6 Net income 7 Other comprehensive income (loss) 8 Issuance of common stock 9 Purchase of common stock 10 Stock-based compensation 11 Cash dividends declared on common stock 12 Balance at January 31, 2017 13 Net income 14 Other comprehensive income (loss) 15 Issuance of common stock 16 Purchase of common stock 17 Stock-based compensation 18 Cash dividends declared on common stock 19 Balance at January 31, 2018 - $ 72.50 $ (175.00) $ - $ - $ 14,897.50 $ 45,240.00 $ (100,450.00) $ 25,000.00 $ - $ (1,750.00) $ 3,603.00 $ (159,377.50) $ 10,829,790.00 (132,080.00) $ $ (40,250.00) - $ 100.00 $ (25.00) $ 62,400.00 $ (10,600.00 $ 25,000.00 $ (2,250.00) $ (158,024.50) $ 14,972.50 $ 10,906,590.00 $ (172,330.00)