The following financial statements and information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 $166,200 107, 100 193,400 285,000 674,000 (322,000) 85,000 $1,188,700 $125,100 88,000 178,200 226,000 508,000 (249,000) 126,000 $1,002,300 Assets Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable Total liabilities Stockholders' equity Common stock, no par Preferred stock, $50 par Paid-in capital in excess of par-Preferred stock Total paid-in capital Retained earnings Less: Treasury stock Total stockholders' equity Total liabilities and stockholders' equity $37,800 239,000 207,000 483,800 $68,700 259,000 104,000 431,700 249,700 114,000 35, 100 398,800 337,100 (31,000) 704,900 $1,188,700 207,000 104,000 27,800 338,800 272,800 (41,000) 570,600 $1,002,300 Income Statement For the Year Ended December 31, Year 2 Sales revenue $1,089,000 $1,089,000 (795,200) 293,800 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment Net income $21,200 95,000 93,000 (209, 200) 84,600 (17,000) 30,000 14,000 $111,600 Additional Information 1. Sold land that cost $41,000 for $46,000. 2. Sold equipment that cost $31,000 and had accumulated depreciation of $21,000 for $19,000. 3. Purchased new equipment for $197,000. 4. Sold marketable securities that were classified as available-for-sale and that cost $43,000 for $73,000. 5. Purchased new marketable securities, classified as available-for-sale, for $102,000. 6. Paid $21,000 on the principal of the long-term note. 7. Paid off a $104,000 bond issue and issued new bonds for $209,000. 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock. 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Statement of Cash Flows Reg A to C Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.) BLYTHE INDUSTRIES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash Receipts from: Sales Total cash inflows $ 0 Cash payments for: Interest Inventory purchased Operating expenses Total cash outflows Net cash flow from operating activities Cash flows from investing activities: 0 0 Proceeds from sale of land 0 10,000 Cash flows from financing activities: Proceeds from bonds issue Proceeds from common stock issue Proceeds from sale of treasury stock Proceeds from preferred stock issue Repayment of bonds Repayment of loan Payment of dividends 10,000 10,000 Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance $ 10,000