Testbank Exercise 5 Alma Ortiz prepared Carlee Instruments' balance sheet and income statement for 2014. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Cariee's president, Mike Lymon, has asked you to prepare the statement of cash fiows. Lymon has provided you with the balance shect and income statement that Ortiz prepared, as well as some notes she made: Income Statement For the Year Ended December 31, 2014 $127,900 69,800 58,100 Sales revenue Cost of goods sold Gross margin Selling expense Administrative expense Salaries expense $13,000 8,000 1,500 4,000 46,50 Interest expense Income before gain and taxes Gain on sale of equipment Income tax expense 11,600 Net income $11,700 Carlee Instruments Comparative Balance Sheets As of December 31 2014 2013 $6,100 $4,300 6,800 5,500 33,700 34,20D 46,600 44,000 211,900 214,300 $258,500 $258,300 $3,400 $4,900 2400 2,200 2,100 2,600 60,500 50,000 68,40059,700 125,000 125,000 65,100 73,600 190,100 198,600 Total liabilities & stockholders' equity $258,500 $258,300 Accounts receivable, net Total current assets Property, plant,& equipment, net Total Assets Accounts payable Accrued expenses Taxes payable Note payable Total liabilities Common stock Retained earnings Total stackholders' equity Equipment with an original cost of $35,000 was sold for $20,300. The book value of the equipment was $19,400. On June 1, 2014, the company purchased new equipment for cash at a cost of $18,500 At the end of the year the company issued notes payable for $10,500 cash. The note will mature on December 31, 2018. The company pald $20,200 in cash dividends for the year