prepeare cash flow statememt

Lima corporation 2016 2015 Balance Sheet December 2016 and 2015 Assets Cash 43,050 23,925 Accounts Receivable 34,125 39,825 Inventory 156,000 146,475 Prepaid Expenses 3.600 1.650 Total Current Assets 236,775 211,875 Equipment 135,825 146,700 Accumulated Depreciation (61.950) (47,550) Total Assets 310650 311.025 Liabilities Accounts Payable 28,800 33,750 Income Taxes Payable 5,100 4,425 Dividends Payable O 4.500 Total Short Term Liabilities 33,900 42,675 Bonds Payable 0 37.500 Total Liabilities 33.900 80.175 Equity Common Stock, $10 par value 168,750 168,750 Retained Earnings 108,000 62.100 Total Liabilities and Equity 310,650 311.025 446,100 Lima Corporation Income Statement December 31, 2016 Sales Cost of Goods Sold Other Operating Expenses Depreciation Expense Other Gains (Losses) Loss on sale of equipment Loss on retirement of bonds Income before taxes Income tax Net Income 222,300 120,300 25,500 (368,100) 3,300 825 (4.125) 73,875 (13.725) 60.150 Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale of equipment. 4. The balance of retained earnings is affected by dividend declarations and net income. 5. All sales are made on credit. 6. All inventory purchases are on credit. 7. Account payable balances result from inventory purchases. 8. Prepaid expenses relate to "other operating expenses