Tertia Company presents balance sheets at the beginning and end of Year 8 (Exhibit 3.15),

as well as a statement of cash receipts and disbursements (Exhibit 3.16)
Year 8
CASH RECEIPTS
1. Collection from Credit Customers . . . . . . . . . . . . . . . . . . . . $144,000
2. Cash Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000
3. Collection of Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Total Cash Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $208,000
LESS CASH DISBURSEMENTS
4. Payment to Suppliers of Merchandise . . . . . . . . . . . . . . . . . $114,000
5. Repayment on Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
6. Payment of Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
7. Prepayment to Suppliers of Miscellaneous Services . . . . . . 57,500
8. Payment of Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . ...1,200
9. Payment of Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Total Cash Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $180,200
Increase in Cash Balance for Year 8 . . . . . . . . . . . . . . . . . . .. $ 27,800
Prepare a combined statement of income andretained

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December 31 Year 8 Year 7 ASSETS S 67,800 41,000 49,500 700 5,200 47,000 Cash counts and Notes Receivable. Interest Receivable. Building, Machinery, and Equipment . . . . . . . . . .. . . . . . . . S 40,000 36,000 55,000 1,000 4,000 47,000 (12,000) 10,000 S 99,200 $173,000 LIABILITIES AND SHAREHOLDERS' EQUITY 41,000 1,500 30,000 S 75,000 S 25,000 99,200 $124,200 $199,200 34,000 1,000 35,000 72,000 S 25,000 76,000 $101,000 $173,000 Total Liabilities. .NPWW.A Retained Earnings.* .. . Total Liabilities and Shareholders Equity.