Prepare a statement of cash flow for Morse company for year ending December 31,2004

5 3. (S.o.6) Comparative balance sheets at December 31,2003 and 2004, for the Company are shown below. Balance Sheets Accounts Receivable Prepaid Expenses Plant Assets 62,000 98,000 74,000 118,000 124,000 6,000 86,000 Accumulated Depreciation 224,000 279,000 32,000 4.000 53,000 (36,000) (80,000) Total Assets Accounts Payable Notes Payable Bonds Payable Common Stock Additional Paid-in Capital Retained Earnings 41,000 63,000 58,000 46,000 275,000 429.02 $616009 250,000 129,000 56,000 Total Equities Additional Information: (1) A fully deprociated phnt asoot, which originally cost $20,000 and bad no salvage value, (2) Bonds payable were issued at par vaiue. Two-thirds of the bonds were exchenged for 3) Common stock was sold for cash. was sold for $1,000. land; the remaining one-third was issued for cash (4) The only entries in the Retained Earnings account are for dividends paid in the amount (5) Normal depreciation expense was recorded during the year and the franchise ws (6) The income statement for the year is as follows: of 310,000 and for the net income for the year $186,000 Cost of sales 4,000 Gross Profit Operating expenses lacome before gain Net Income Gain on sale of plant asset