x company cash flows
account	12/31/x1	12/31/x12	change dr (cr)
cash	22,000	$ 117,600	$ 95,600
account receivable	28,000	$ 19,000	$ (9,000)
allowance for bad debts	(4,000)	$ (5,000)	$ (1,000)
inventory	10,000	$ 12,000	$ 2,000
long term investment	20,000	$ -	$ (20,000)
plnat	60,000	$ 47,000	$ (13,000)
accumulated dep. Plant	(20,000)	$ (26,000)	$ (6,000)
equipment	44,000	$ 48,000	$ 4,000
accumulated dep. Equipment	(16,000)	$ (12,000)	$ 4,000
land	60,000	$ 125,000	$ 65,000
patents	14,000	$ 12,000	$ (2,000)
total assset	218,000	$ 337,600	$ 119,600
			$ -
acccount payable	4,000	$ 16,000	$ (12,000)
wages payable	-	$ 2,000	$ (2,000)
notes payable long term	38,000	$ 51,000	$ (13,000)
common stock- 5 par	50,000	$ 65,000	$ (15,000)
paid in capital in excess of par	40,000	$ 85,000	$ (45,000)
retained earnings	86,000	$ 118,600	$ (32,600)
	218,000	$ 337,600	$ (119,600)
income statement
sales	(225,000)
cost of goods sold	110,000
deprication and amortization	12,000
other expenses	38,000
bad debt expense	8,000
lower cost or market adjustment	4,000
gain on the sale equipment	(3,000)
impairment loss on plant	13,000
gain on the sale on investment	(15,000)
loss on non-recources factoring of A/R	2,000
income tax expense	19,400
net income	(36,600)
1- income as reported above
2- during the year the company declared and paid cash dividends totaling $4,000
3- at the end of the year sold equipment that cost $16,000 (50% deprication)
4- purchased land that cost $25,000 paid cash of $7,000 gave a long term note for the balance
5- paid $5,000 to retire a long-term note payable
6- issued 3,000 shares of stock with fair value of $20 per share 2,000 issued for land 1,000 issued for cash
7- sold a long term investment with cost of $20,000
8- account receivable $35,000 were sold to a finance company on non-recourse basis