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Use the following 2-year Balance Sheet and Income Statement to determine how much Cash was Paid to Owners? All answers are given as positive numbers,
Use the following 2-year Balance Sheet and Income Statement to determine how much Cash was Paid to Owners? All answers are given as positive numbers, even though cash is paid. Balance Sheet Assets Year 1 Year 2 Cash 50,000 40,000 Prepaid Insurance 6,000 3.000 Accounts Receivable 25.000 45,000 Inventory 10,000 10,000 100.000 100,000 100,000 100,000 Accumulated Depreciation 25,000 30,000 Book Value of Building 75,000 70,000 Investments Total Assets 166,000 168,000 Liabilities Accounts Payable 25,000 15,000 Notes Payable 80,000 Interest Payable. 4,000 1,000 Total Liabilities 109,000 16,000 Owners Equity 50,000 75,000 Retained Earnings 2000 77.000 Stock Total Owners Equity 7,000 77,000 57,000 152,000 Total Liabilities & Owners Equity 166,000 168,000 Income Statement Revenues COGS Year 2 120,000 65,000 55,000 Gross Profit Insurance Expense 3,000 Depreciation Expense 5,000 Interest Expense 1,000 Net Income 46,000
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