Western Resources						Western Resources
Balance Sheet						Income Statement
At December 31, 20X5						For the Period Ended December 31, 20X5
Assets		20X5		20X4
Current assets						Sales Revenue	$	34,000,000
Cash	$	900,000	$	255,000		Cost of Goods Sold		(29,500,000)
Accounts receivable		100,000		2,500,000		Gross Profit	$	4,500,000
Allowance for Doubftul Accounts		(10,000)		(250,000)
Inventory		7,200,000		1,950,000		Operating Expenses:
Prepaid Rent		710,000		860,000		Rent Expense	$	(800,000)
Long-term assets						Utilities Expense		(150,000)
Land	$	3,975,000		4,200,000		Depreciation Expense		(1,250,000)
Buildings and Equipment		8,250,000		8,750,000		Bad Debts Expense		(160,000)
Accumulated Depreciation		(4,250,000)		(3,550,000)		Total Operating Expenses	$	(2,360,000)
Total assets	$	16,875,000	$	14,715,000
Liabilities and Stockholders' Equity						Other:
Current liabilities						Interest Expense	$	(640,000)
Accounts payable	$	2,850,000	$	1,100,000		Loss on Sale of Building		(100,000)
Interest payable		490,000		400,000		Gain on Sale of Land		400,000
Income taxes payable		80,000		310,000
Dividends payable		12,000		55,000		Income Before Income Taxes	$	1,800,000
Long-term liabilities						Income Tax Expense		(720,000)
Long-term debt	$	2,600,000		4,000,000		Net Income	$	1,080,000
Stockholders' Equity
Common stock	$	6,675,000		5,600,000
Retained earnings		4,168,000		3,250,000
Total liabilities and shareholders' equity	$	16,875,000	$	14,715,000

Additional information: The following journal entry was recorded during the year:

Building 700,000

Common Stock 700,000

Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of cash flows using the indirect method, and a complete statement of cash flows using the direct method.

Investing and Financing Sections Requirement Complete the investing and financing sections of the statement of cash flows below. Western Resources Statement of Cash Flows (Investing and Financing Sections) For the Period Ended Dec. 31, 20X5 Cash Flows from Investing Activities Net Cash Inflowl(Outflow) Investing Activities $ 0 Cash Flows from Financing Activities Net Cash Inflowl(Outflow) Financing Activities $ Investing and Financing Sections next