Problem 2 (25 points) Use the following financial statements to answer the questions on the following page. So Extra, Inc Income Statement For the Year Ended December 31, 2017 Revenues $4,400,000 Gain on sale of Land 15,000 Expenses: Cost of Goods Sold Operating Expenses 2,800,000 650,000 Depreciation Expense 75,000 Income Tax Expense 280,000 Total Expenses 3,805,000 Net Income $610,000 2016 So Extra, Inc. Balance Sheet At December 31, 2017 Assets 2017 Current Assets Cash $50,000 Accounts Receivable 65,000 Inventory 110,000 Long-Term Assets Land 150,000 Equipment 650,000 Accumulated Depreciation (155,000) Total Assets $870,000 $30,000 80,000 90,000 200,000 440,000 (80,000) $760,000 $37,500 27,500 15,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Interest Payable Income Tax Payable Long-Term Liabilities: Notes Payable Stockholder's Equity Common Stock Retained Earnings Total Liabilities and Equity $55,000 5,000 20,000 100,000 200,000 280,000 410,000 $870,000 280,000 200,000 $760,000 Additional Information for 2017 (Assume the indirect method is used to calculate operating cash flows): 1. Sold land costing $50,000 for $65,000, resulting in a gain on sale of $15,000 2. Purchased equipment for $210,000 cash. 3. Repaid $100,000 in notes payable at the beginning of the year. 4. Declared and paid a cash dividend of $400,000. Problem 2 (25 points) Continued -19.5 Fill in the boxes in the Statement of Cash Flows below with the appropriate transaction and the blanks with dollar amounts (use parentheses to indicate negative numbers): (1 pt each) So Extra, Inc. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net inconue Adjustments s 6lo, ono Change in A/R Change in Inventory Change in A/P Change in Interest Payable Change in Income Tax Payable Net Cash Flows from Operating Activities Cash Flows from Investing Activities $ $ $ $ S . - 2 S Net Cash Flows from Investing Activities Cash Flows from Financing Activities Net Cash Flow from Financing Activities Net Increase (decrease) in cash Cash at the beginning of the period Cash at the end of the period jo for