Problem 18 The operations of the Great Rae Caf, a small food service operation, are becoming more complex. Natalie Rae, the owner, has asked for your help in understanding the condensed balance sheets and the additional information provided. The Great Rae Caf Condensed Balance Sheets December 31, 20X1 and 20X2 20X1 Cash $ 15,000 Accounts Receivable 15,000 Inventory 25,000 Investments (noncurrent) 110,000 Equipment 240,000 Accumulated Depreciation Total Assets $385,000 Current Liabilities: Accounts Payable $ 18,000 S Note Payable Dividends Payable 5,000 Noncurrent Liabilities: Note Payable 152,000 Common Stock 200,000 Treasury Stock (40,000) Retained Earnings 40,000 Total Liabilities and Owners' Equity $385,000 20X2 $ 12,000 14,000 20,000 105,000 320,000 (50,000) $421,000 (20,000) V 10,000 oldav $ 10,000 10,000 10,000 171,000 200,000 (50,000) 70,000 $421,000 The Statement of Cash Flows 219 Additional information: 1. Investments costing $10,000 were sold for $5,000. 2. Dividends paid during 20X2 totaled $30,000. 3. The caf's van, which cost $20,000, was sold for $5,000. Its net book value on the date of sale was $3,000. 4. Marketable securities purchased during 20X2 for $5,000 were sold for a gain of $2,000 during 20X2. 5. Assume that the retained earnings account is affected only by dividends declared and the result of operations (net income). 6. Assume current liabilities are paid on a timely basis. 7. Assume the current amount of notes payable was reclassified from the noncurrent notes payable. Required: 1. What amount of dividends was declared during 20X2? 2. What amount of the note payable was paid during 20X2? 3. What impact did the change in inventory during 20X2 have on cash? 4. What impact did the change in accounts payable during 20X2 have on cash? 5. What was the net income for 20X2? 6. What amount of investments was purchased during 20X2? 7. What was the depreciation expense for 20X2? 8. What was the amount of working capital at the beginning of 20X2? %. What amount of cash was received on the sale of marketable securities during the year? 10. What amount of treasury stock was sold during 20X2