Step 1 Step 2 Step 3 Finish, Inc. Balance Sheets For the years ended 12/31/x3 and 12/31/12 Ending 12/31/x3 Beginning 12/31/x2 Change ASSETS Cash 148,200 Accounts receivable (current asset) 44,000 53,000 40,000 Prepaid insurance (current asset) 200 95,200 4,000 -200 Equipment 80,000 90,000 Less Accumulated Depreciation -29,000 -10,000 Intangible assets 4,000 Total Assets 247.200 5,000 178.200 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable (current liability) 15,000 Unearned revenue (current liability) 17,000 5,000 20,000 10,000 -3,000 Notes payable (non-current) Common stock ($5 par) 5,000 10,000 15,000 15,000 Paid in capital in excess of par Retained earnings Total Liabilities and Stockholders' Equity a. Net income is $70,000. b. Depreciation expense is $20,000. 4,000 191,200 4,000 124,200 247.200 178.200 c. Amortization expense is $1,000 d. Equipment costing 10,000 with accumulated depreciation of $1,000 sold for $11,000 cash. Gain on the sale is $2,000. e. Paid $5,000 non-current note principal f. Paid cash dividends $3,000 Finish, Inc. Statement of Cash Flows For the year ended 12/31/20x3 OPERATIONS Net income Add Depreciation expense Amortization expense Gain on Sale Schedule of changes in CA and CL Accounts receivable Prepaid insurance Accounts payable Unearned revenue Cash Provided by Operations INVESTING ACTIVITIES Cash by Investing Activities FINANCING ACTIVITIES Cash by Financing Activities Net Change in Cash Add Beginning Cash Ending Cash 53,000 148,200