You have been hired by Georgy Inc to assist them in the preparation of their Statement of

Cash$-$Flows $($using the indirect method$).$ You can find below the balance sheet for this

year and last year and some additional information.

$2030203120302031$

Cash $37,00077,000$ Accounts

Payable $33,00052,000$

Accounts

Receivable $38,00040,000$ Unearned

Revenues $12,0007,000$

Inventory $75,00030,000$ Dividend

Payable $15,00010,500$

Pre$-$Paid

Expense $12,00096,000$ Notes

Payable $($LT$)28,00093,000$

PPE $80,00090,000$ Common

Stock $95,000105,000$

Accumulated

Depreciation $(11,000)(14,000)$ Retained

Earnings $68,00072,500$

Brand

name $20,00021,000$

Assets $251,000340,000$ Liabilities &

Owners' Equity $251,000340,000$

In addition, you learned the following facts:

$1)$ The net income for the year was $7,000.$

$2)$ Georgy sold a machine bought for $5,000.$ The accumulated depreciation at the

time of sale was $3,000$ and they received $1,500$ for the machine.

$3)$ The notes are payable to Georgy$$s bank. Georgy did not pay any long$-$term

notes during the year.

$4)$ The value of the trade mark was written off by $4,000$