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 Inventory 900 525 375 Land 650 600 50 Building 900 900 0 (310) (270) 40 Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 2,850 2,250 600 (525) (480) 45 1,300 1,500 (200) 2055 5.975 Liabilities Accounts payable 1750 450 300 Accrued Liabilities 300 225 75 Taxes Payable 50 0 501 Liabilities 450 300 Accounts payable 750 225 75 300 Accrued Liabilities 50 0 50 Taxes Payable 40 25 75 50 0 50 75 100 (25) 150 150 Interest Payable Dividends Payable 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 1,500 240 7055 5.975 ZBB Industries Income Statements For the Year Ended December 31, 2019 ($ in 000s) Revenues Sales revenue 2,645 Gain on sale of land 90 Total Revenue 2,735 600 Expenses Cost of goods sold Operating Expenses LOSS on sale of equipment 1155 15 Interest Expense 50 Income Tax Expense 75 Total Expenses 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. $100 of legal costs paid to defend the patent was capitalized during the year. There were no additional patents purchased during the year or no patents were disposed of during the year. Patents were properly amortized. 4 Amortization expense and depreciation expense is included in operating expenses. 5. Additional stock was issued for cash during the year. 6. Dividends were declared during the year. From the information above, prepare a schedule of cash provided by operating activities using the direct method. B I 7 ZBB Industries Statement of Cash Flow - Operating Section Only (Direct Method), For the Year Ended December 31, 2019 ($ in 000s)