Toshiro Tools Ltd sells car parts through an online platform. Mkyta a very bright graduate from EU has been given comparative income statements and balance sheets for the past two years so that he can a cash flow statement. He has also been given following addi- tional information

Additional Information

The following information regarding the company's operations in 2019 is available from the company's accounting records:

1. Earlyintheyearthecompanydeclaredandpaida$4,000cashdividend.
2. Duringtheyearmarketablesecuritiescosting$15,000weresoldfor$14,000
3. cash, resulting in a $1,000 non-operating loss.
4. The company purchased plant assets for $20,000, paying $2,000 in cash and
5. issuing a note payable for the $18,000 balance.
6. Duringtheyearthecompanyrepaida$10,000notepayable,butincurredan
7. additional $18,000 in long-term debt as described in c.
8. Theownersinvested$15,000cashinthebusinessasaconditionofthenew
9. loans described in d.

loans described in a. TOSHIRO TOOLS Income statement for year 2018 2019 Sales . . . $500,000 $ 350,000 Less: Cost of goods sold 200,000 140,000 Gross profit on sales . . . . $300,000 $ 210,000 Less: Operating expenses (including depreciation of $34,000 in 2014 and $35,000 in 2015) . . .. 260,000 243,000 Loss on sale of marketable securities . . 1,000 Net income (loss) . . . .. $ 40,000 ($ 34,000TOSHIRO TOOLS Balance sheet as at 31 December M8905 Cash and cash equivalents ......................... Marketable secunties Accounts receivable Inventory ....................................... Plant and equipment (net of accumulated depreciation) .................................. Totals ........................................ \"abilities & Stockholders' Equity Accounts payable ................................ Accrued expenses payable ......................... Note payable .................................... Capital stock (no par value) ......................... Retained earnings ................................ Totals ........................................ 2018 2019 $ 10,000 20,000 40,000 120,000 300,000 $490,000 $ 50,000 17,000 245,000 120,000 58,000 $490,000