I. Statement of Cash Flows Using the information below, prepare in good form a Statement of Cash Flows for Savage Corporation on the following page. Information from the December 31, 2012 and 2011 balance sheets of Savage Corporation are presented below. 2012 2011 Cash $ 30,000 $ 50,000 Accounts Receivable, net 410.000 460,000 Inventory 300.000 320,000 Prepaid Expenses 20.000 15,000 Long-Term Investments 50.000 25,000 Land 560.000 300.000 Buildings and Equipment 2,000,000 1,900.000 Accumulated Depreciation (800.000) (770.000) $ 2.570.000 $ 2.300.000 Accounts Payable Accrued Liabilities Bonds Payable Long-Term Note Payable Common Stock, $2 par value Paid-in Capital in Excess of Par Value Retained Earnings $ 300,000 40.000 500.000 150,000 200.000 710,000 670.000 $2.570.000 $ 120.000 50.000 800,000 0 160,000 550.000 620.000 $ 2.300.000 Additional information about 2012 transactions and events: (a) Net income was $110,000. (b) Depreciation expense on buildings and equipment was $60,000. (c) Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of $17,000 (d) Declared and paid cash dividends of $60,000 (e) Issued a $150,000 long-term note payable for buildings and equipment. (f) Purchased long-term investments for $25,000. (g) Paid $300,000 on the bonds payable. (n) Issued 20,000 shares of $2 par value common stock for $200,000 (0) Purchased land for $260,000. Balance Sheet 2012 2011 Change Total Assets OI lo Total Liabilities and Equity 2 0 1 Additional information about 2012 transactions and events: (a) Net income was $110,000. (b) Depreciation expense on buildings and equipment was $60,000. (c) Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of $17,000. Declared and paid cash dividends of $60,000. (e) Issued a $150,000 long-term note payable for buildings and equipment. Purchased long-term investments for $25,000. (g) Paid $300,000 on the bonds payable. (h) Issued 20,000 shares of $2 par value common stock for $200,000. Purchased land for $260,000. e Don't forget the proper heading Cash flow from Operating Activities Net Income Add: Depreciation Loss on sale of equipment Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Liabilities Cash flow from Operating Activities Cash flow from Investing Activities Sale of Equipment Purchase of Long Term Investments Purchase of Land Cash flow from Financing Activities Payment on Bonds Payable Issuance of Common Stock Payment of Dividends Net increase/(decrease) in cash Beginning Cash Balance Ending Cash Balance Noncash financing and investing transaction: Issued long term note payable for buildings and equipment