Question 2 Marks 20 The comparative balance sheet of Abdullah & Company for 30th June, 2014 and 2013, as follows 2014 2013 Assets Cash $ 140,350 95,300 $ 95,900 102,300 Accounts receivable (net) 165,200 Inventories Prepaid expenses Investments (long-term) 157,900 5,860 6,240 35,700 75,000 Land Buildings Accumulated depreciation-buildings. Machinery and equipment. Accumulated depreciation-machinery and equipment. Patents 375,000 (71,300) 428,300 (148,500) 58,000 $1,159,290 84,700 90,000 260,000 (58,300) 428,300 (138,000) 65,000 $1,093,660 Total assets $ $ 43,500 14,000 46,700 12,500 8,400 7,900 14,000 10,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income taxes payable.. Dividends payable... Mortgage note payable, due 2023. Bonds payable Common stock, $30 par. Excess of issue price over par-common stock Retained earnings..... Total liabilities and stockholders' equity.. 40,000 0 150,000 250,000 450,000 66,250 375,000 41,250 373,640 $1,159,290 349,810 $1,093,660 Sales .. $1,100,000 710,000 Cost of merchandise sold $ 390,000 $ 23,500 7,000 Gross profit. Operating expenses: Depreciation expense Patent amortization. Other operating expenses Total operating expenses. Income from operations Other income: 196,000 226,500 $ 163,500 Gain on sale of investments.. $ 11,000 Other expense: Interest expense. Income before income tax 26,000 (15,000) $ 148,500 50,000 $ 98,500 Income tax expense Net income Prepare a statement of cash flows, using any method and calculate atleast 4 cash flow statements of the company. Considering the following information. An examination of the accounting records revealed the following additional information applicable to 2014: a. Land costing $18,000 was sold for $18,000. b. A loan was issued for $50,000. c. A building costing $110,000 was constructed. d. 2,500 shares of common stock were issued at $40 in exchange for the bonds payable. e. Cash dividends declared were $80,000. 74670