The following is taken from the financial records of Take Your Best Guess, Inc. Using this data: 1. Compute the values that should be reported where question marks appear on the financial statements. 2. Prepare a statement of cash flow in good form using the direct method. Take Your Best Guess, Inc. Income Statement For the Year Ended December 31, Year 2 Notes to Financial Statements: 1. Equipment was sold during the year. Its cost was $40,000 and its book value at the time of sale was $10,000. 2. On May 1, Year 2, the company issued 6,000 shares of common stock at $2.50 pershare. 3. On July 1, Year 2, the company converted all outstanding bonds into common stock at face value. 4. All merchandise sales are on credit, accounts payable relates to vendor transactions, accrued expenses payable are wages owed to workers. 5. Year 2 Selling Expenses include $16,000 of salaries and $18,000 of wages are included in Administrative Expenses. Other Data: Year 2 Current Ratio =3:1 Year 2 Acid Test Ratio =1.9:1 Year 2 Accounts Receivable Turnover =16 times Year 2 Net Income =16.25% Year 2 Gross Profit Ratio =62.5% Year 1 Debt to Asset Ratio =40% Year 1 Current Ratio =3.75:1