ZBB Industries Comparative Balance Sheets December 31, 2019 and 2018 ($ in 000s) 2019 2018 Change Assets Cash 690 500 190 Accounts receivable 600 450 150 900 525 375 Inventory Land 650 600 50 900 900 0 (310) (270) 40 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation 2,250 600 2,850 (525) 45 Patent (480) 1,500 1,300 (200) 2.055 5,975 Liabilities 750 450 300 Accounts payable Accrued Liabilities Taxes Payable 300 225 75 50 50 Liabilities 750 450 300 Accounts payable 300 Accrued Liabilities 75 225 50 0 50 Taxes Payable Interest Payable Dividends Payable 40 25 15 50 0 50 75 100 (25) 150 150 Short-term Debt Long-Term Note Payable Shareholders' Equity Common Stock Paid-in capital-excess of par Retained earnings 3,150 3,000 150 750 675 75 1,740 1,500 5.975 240 2055 ZBB Industries Income Statements For the Year Ended December 31, 2019 ($ in 000s) Revenues 2,645 Sales revenue 90 Gain on sale of land 2,735 Total Revenue Expenses 600 1155 Cost of goods sold Operating Expenses Loss on sale of equipment Interest Expense Income Tax Expense Total Expenses 75 50 75 1,895 Net Income 840 Other information: 1. During 2019, equipment with a cost of $300 (90% depreciated) was sold. 2. Land was purchased during the year for $275. The previous landowner was given cash and a long-term note of $150 for the entire purchase price of the land. 3. $100 of legal costs paid to defend the patent was capitalized during the year. There were no additional patents purchased during the year or no patents were disposed of during the year. Patents were properly amortized. Amortization expense and depreciation expense is included in operating expenses. 5. Additional stock was issued for cash during the year, 6. Dividends were declared during the year. From the information above, prepare a statement of cash flows (indirect method) for ZBB Industries for the year ended December 31, 2019. 1 A- ZBB Industries Statement of Cash Flow For the Year Ended December 31, 2019 (S in 00s) ZBB Industries Statement of Cash Flow - Operating Section Only (Direct Method) For the Year Ended December 31, 2019 ($ in 000s)