Use the Comparative Balance Sheet you prepared in Phase #2 and the following additional information to prepare the Statement of Cash Flows for the month of January 2015. Use the indirect method to prepare the operating activities section.

• Issued 10,000 new shares of common stock when the stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.
• Purchased land with a cost $200,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference.
• Purchased additional store equipment for $20,000 paying cash.
• The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows.
• Issued bonds with a face amount of $150,000 at 97. Hint: The amortization of the bond discount in the amount of $450 should be reported as an addition to the operating activities section.
• Paid off the mortgage payable of $175,000.
• The company repurchased 20,000 shares of its common stock on the open market for $9 per share.
• The company reissued 10,000 of the treasury shares at a price of $18 per share.
• Issued 1,500 shares of preferred stock at $105 per share.
• Paidcashdividendsof$35,000topreferredandcommonstockholders.

Be Prepared Profit and loss account for the year ended January 31, 2015 $ 425,225 W1 -125,500 299,725 50 -83,050 W2 -6,500 210,225 Revenue Cost of Goods Sold Gross Profit Other Income Expenses Finance Costs Net Income Workings W1 Revenue Gross sales Less: Discounts Less: Returns 431,225 -750 -5,250 425,225 W2 Expenses Insurance expense - general Repairs expense: Office Depreciation expense : Building general Depreciation expense : Office Equipment Supplies expenses - selling Utilities expense : Office Office salaries expense Office Payroll tax expense Depreciation expense : Store Equipment Amortization expense : Pat - general Sales salaries expense Sales payroll tax expense Utilities expense : Store Delivery expense - general Repairs expense: Store Bad Debt expense - selling 300 2,100 10,000 2,500 2,400 1,100 25,000 7,000 800 800 20,000 5,600 1,200 1,500 750 2,000 83,050 Be Prepared Balance Sheet as at January 31, 2015 $ ASSETS Non Current Assets Property, Plant and Equipment Patents 871,700 W1 65,000 936,700 Current Assets Inventory Accounts Receivable Interest Receivable Note Receivable Prepaid Insurance Cash 15,700 W2 24,460 W2 100 15,000 1,600 423,615 480,475 Total Assets 1,417,175 EQUITY AND LIABILITIES Equity Common Stock Preferred Stock Retained Earnings 415,000 W3 271,250 W3 316,975 W4 1,003,225 Non Current Liabilities Notes Payable long term Bonds Payable 220,000 145,950 W5 365,950 Current Liabilities Accounts Payable Utilities Interest Payable 30,000 12,500 5,500 48,000 Total Liabilites 413,950 Total Liabilities and Equity 1,417,175 - Workings W1 Property, Plant and Equipment (PPE) Land Building Accumulated Depreciation - Building Office Equipment Accumulated Depreciation - Office Equipment Store Equipment Accumulated Depreciation - Store Equipment 375,000 425,000 -50,000 70,000 -17,500 95,000 -25,800 W2 Accounts Receivable Accounts Receivable Less: Allowance for doubtiful accounts W4 Retained Earnings 52,500 69,200 871,700 25,000 -540 24,460 Inventory Merchandise Inventory Stores Supplies Stores Supplies W3 Stock 375,000 7,200 8,000 500 15,700 Common Stock Paid in Capital in Excess of par: Common Preferred Stock Paid in Capital in Excess of par: Preferred 120,000 295,000 210,000 61,250 415,000 271,250 Opening Balance Net Income for the year W5 Bonds 106,750 210,225 316,975 Bonds Payable Discount on Bonds Payable 150,000 -4,050 145,950