Statements of Financial Position Increase catego / Decreased OF cash Accounts receivable Merchandise inventory Laporte In 5 Long-term investments Cash flow statement 7 PPE Year Ended December 31 2017 Accumulated depreciation Operations Total assets Net income 10 Accounts payable Add back depreciation 11 Income taxes payable Add loss on sale of old equipment 12 Long-term borrowings Increase in accounts receivable 13 Contributed capital Decrease in merchandise inventory 14 Retained earnings Decrease in accounts payable Total liabilities an shareholders equity Decrease in income taxes payable Cash flow from operations Statement of Earnings is sales Investing 19 cost of sales Acquisition of Property , plant , and equipment Gross profit Proceeds from sale of PPE 21 Depreciation expense Sale ( maturity ) of investment securities for cas 22 Other operating expenses Sold on lont- term investment Earnings from operations Cash flow from investing 24 Gain on sale of investments 25 Loss on sale of equipment 10 - 21 + 2 Financing Earnings before income tax Borrowing on long-term note 27 Income tax expense Issuance of shares for cash Net earnings Dividends paid Cash flow from financing Net change in cash Cash beginning of year Sale for old equipment Cash end of year