The balance sheets for Jenson Company for the years ended December 31, Year 2 and Year 1, are as follows: Year 2 Year 1 Cash $50,000 $53,000 37,000 Accounts receivable (net) 48,000 Inventories 108,500 100,000 Investments 70,000 Equipment Accumulated depreciation equipment 573,200 (142,000) $629,700 450,000 (176,000) $542,000 $62,500 $43,800 100,000 325,000 285,000 Accounts payable Bonds payable, due Year 2 Common stock, $10 par Paid-in capital in excess of par- common stock Retained earnings 80,000 55,000 162,200 58,200 $629,700 $542,000 The income statement for the current year is as follows: Sales Cost of merchandise sold Gross profit Operating expenses: $625,700 340,000 $285,700 Operating expenses: Depreciation expense $26,000 Other operating expenses 68,000 94,000 Income from operations $191,700 Other income: Gain on sale of investment $4,000 Other expense: Interest expense 6,000 (2,000) Income before income tax $189,700 Income tax 60,700 Net income $129,000 Decrease in accounts receivable -4,000 X Increase in accounts payable 11,000 X Increase in inventories -8,500 Gain on sale of investments 18,700 X 172,200 Net operating cash Cash flows from investing activities: Sale of investments 74,000 Purchase of equipment -183,200 - 109,200 Net cash from investing activities Cash flows from financing activities: Sale of common stock -100,000 X Retired bonds payable 65,000 X Payment of dividends -25,000 -60,000 Net cash from financing activities Increase in cash 3,000 AU (eu cujusung Tems. Depreciation 26,000 Decrease in accounts receivable -4,000 X Increase in accounts payable 11,000 X Increase in inventories -8,500 Gain on sale of investments 18,700 X 172,200 Net operating cash Cash flows from investing activities: Sale of investments 74,000 Purchase of equipment -183,200 -109,200 Net cash from investing activities Cash flows from financing activities: Sale of common stock - 100,000 X Retired bonds payable 65,000 X Payment of dividends -25,000 -60,000 Net cash from financing activities Increase in cash 3,000 Cash at the beginning of the year 50,000 Cash at the end of the year 53,000