VAUGHN COMPANY LTD. Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 241,690 175,850 65,840 24,070 41,770 3,530 38,240 8,660 29,580 Additional data: 1. Depreciation expense is 14,960. 2. Dividends declared and paid were 24,900. 3. During the year, equipment was sold for 9,730 cash. This equipment cost 18,610 originally and had accumulated depreciation of 8,880 at the time of sale. Cash Flows from Investing Activities Sale of Equipment 9730 Cash Flows from Financing Activities V Issuance of Bonds 4570 Issuance of Bonds 4170 Payment of Dividends 24900 Net Cash Used by Financing Activities 25300 16690 Cash at Beginning of Period 19670 Cash at End of Period 36360