USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS: Satisfax Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2008. An income statement for the year and comparative balance sheets follow: Sales Revenue Cost of Goods Sold Gross Profit General and administrative expenses Loss on sale of plant assets Total expenses and losses Income before interest and taxes Interest expense Income before taxes Income tax expense Net Income For the year ended Dec. 31, 2008 $550,000 350.000 $200.000 130,000 5.000 $135.000 $ 65,000 15.000 $ 50,000 17.000 $33.000 December 31 2008 2007 Cash Accounts Receivable Inventory Prepaid Rent Total current assets Land $ 31,000 $ 40,000 90,000 75,000 80,000 95,000 12.000 16,000 $213,000 $226.000 $250,000 $170,000 Plant and Equipment 750,000 600,000 Accumulated Depreciation 310.000) (250,000) Total long-term assets $690,000 $520.000 Total assets $903.000 $746,000 Accounts Payable $155,000 $148,000 Other accrued liabilities 32,000 26,000 Income taxes payable 8.000 10.000 Total current liabilities $195.000 $184.000 Long-term bank loan payable $100.000 $130.000 Common Stock $350,000 $200,000 Retained Earnings 258,000 232,000 Total stockholders' equity $608,000 $432.000 Total liabilities and Stockholder's equity $903,000 $746.000 Dividends were declared and paid during the year. New plant assets were purchased in cash during the year. Also, land was purchased for cash. Plant assets were sold during 2008 for cash. The original cost of the assets sold was i $45.000, and their book value was $30,000. Additional stock was issued for cash, and a portion of the bank loan was repaid.