The financial statements of Brady Inc. are presented below: Cash Accounts receivable Inventory Prepaid insurance Building and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Dividends payable Interest payable Unearned revenues Income taxes payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity Sales Cost of goods sold Gross profit Brady Inc. Balance Sheet As at September 30 Operating expenses Operating income Interest expense Income before taxes Income taxes Net income 2024 $600 14,000 48,000 1,000 45,500 (9,000) $100,100 $13,000 3,000 600 800 6,000 100 20,000 1,500 55,100 $100,100 Brady Inc. Income Statement For the Year Ended September 30, 2024 6.) Unearned revenues are collected from customers. 7.) Paid off $2,000 of long-term note and issued a new note for cash. 2023 $2,000 6,000 24,000 1,500 48,000 (7,000) $74,500 $9,000 2,000 500 100 4,000 300 4,000 1,000 53,600 $74,500 $108,000 54,000 54,000 48,000 6,000 1,500 4,500 1,000 $3,500 Additional information: 1.) Operating expenses are composed of: Depreciation $8,000; Salaries $36,000; Loss on Sale of Equipment $1,000; other operating expenses $3,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $7,500 cash. 4.) Equipment was sold for cash during the year. 5.) Dividends were declared and paid during the year.

indirect method

The financial statements of Brady Inc. are presented below: Additional information: 1.) Operating expenses are composed of: Depreciation $8,000; Salaries $36,000; Loss on Sale of Equipment $1,000; other operating expenses $3,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $7,$00 cash. 4.) Equipment was sold for cash during the year. 5.) Dividends were declared and paid during the year. 6.) Uneamed revenues are collected from customers. 7.) Paid off $2,000 of long-term note and issued a new note for cash