Problem 3. Presented below is information related to Juarez Company on the second year of operation. Use it to prepare a statement of cash flows using the direct method. JUAREZ COMPANY Comprehensive Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation equipment Total 1997 $191,999 12,000 130,000 6,000 180,000 160,000 16,000 $663,999 1996 $159,000 15,000 160,000 8,000 80,000 Change $32,999 Increase 3,000 Decrease 30,000 Decrease 2,000 Decrease 100,000 Increase 160,000 Increase 16,000 Increase $422,000 $60,000 20,000.00 Liabilities and Stockholder's Equity Accounts payable Accrued expenses payable Income tax payable Bonds payable Common stock Retained earnings Total $52,000 15,000 12,000 90,000 400,000 94,000 $663,000 8,000 Decrease 5,000 Decrease 12,000 Increase 90,000 Increase 100,000 Increase 52,000 Increase 30,000 42,000 $152,000 JUAREZ COMPANY Statement of Comprehensive Income For the year ended December 31, 1997 $975,000 Revenues from sales Cost of Goods Sold Operating expenses (excluding depreciation) Depreciation expense Loss on sale of store equipment Income before income taxs Income tax expense Net income $660,000 176,000 18,000 1,000 855,000 120,000 36,000 $84,000 Additional Information (a) In 1997, the company declared and paid a $32,000 cash dividend. (b) Bonds were issued at face value for $90,000 in cash. (c) Equipment costing $180,000 ws purchased for cash. (d) Equipment costing $20,000 was sold for $17,000 cash when the book value of the equipment was $18,000. (e) Common stock of $100,000 was issued to acquire fand