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Question 52 (13 points) The financial statements for Nackawic Inc. are below. Nackawic Inc. Balance Sheet December 31 Assets Cash Accounts Receivable Inventories Available-for-sale securities

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Question 52 (13 points) The financial statements for Nackawic Inc. are below. Nackawic Inc. Balance Sheet December 31 Assets Cash Accounts Receivable Inventories Available-for-sale securities Property, Plant & Equipment Accumulated Amortization Total Assets Current Prior Year Year $92,700 $47,250 90,800 37,000 121,900 102,650 84,500 107,000 290,000 205,000 (49.500) (40,000) $630.400 $458.900 Liabilities & Shareholder's Equity Accounts Payable Accrued Expenses Payable Notes Payable Common Shares Retained Earnings Total Liabilities & Shareholder's Equity $52,700 $48,280 12,100 18,830 140,000 70,000 250,000 200,000 175.600 121.790 $630,400 $458,900 Nackawic Inc. Statement of Earnings Year Ended December 31, Current Year Revenues Sales Gain on sale of equipment $297,500 8,750 306,250 Expenses Casa Carde sold 44 Sales Gain on sale of equipment $297,500 8,750 306,250 Expenses Cost of Goods Sold Amortization Expense Operating Expenses Interest Expense Loss on sale of available-for-sale securities Earnings before income taxes Income tax expense Net earnings $99,460 58,700 14,670 2,940 7,500 183,270 122,980 32,670 $90,310 Additional information: i. Available-for-sale securities were sold for $15,000, resulting in a loss of $7,500. ii. New equipment costing $141,000 was purchased for cash during the year. iii. Equipment costing $56,000 was sold for $15,550, resulting in a gain of $8,750. iv. Accounts Payable relate only to merchandise suppliers. Prepare a complete cash flow statement using the direct method

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