Use the following information for questions 18 through 20 Renfro Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Renfro Mining Co. for 2004 and 2003 are provided below. BALANCE SHEETS Cash Accounts receivable Merchandise inventory Property, plant and equipment Less accumulated depreciation 12/31/04 $153,000 135,000 144,000 2/31/03 $ 72,000 81,000 180,000 $360,000 (120,000) 108,000 (114,000) 246,000 $540,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 66,000 132,000 135,000 81,000 126,000 36,000 147,000 225,000 81,000 $579,000 INCOME STATEMENT For the Year Ended December 31, 2004 $3,150,000 Sales Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income 2682,000 468,000 $225,000 72,000297,000 171,000 27,000 144,000 6,000 S 108,000 3