Using the information provided in E22-5, prepare the cash flow statement for Super View Company using the direct method. Provide all required disclosures.

In E22-5

Super View Company’s comparative balance sheets and its current income statement are presented below.

                     Super View Company

                        Income Statement

            For the year ended December 31

                             Current Year

Sales…………………………………………….       $ 1,875,000

Cost of Goods Sold…………………………..…   1,125,000

Gross Profit……………………………………...    $ 750,000

Selling, General, and Administrative Expenses…      $ 998,500

Bad Debt Expense……………………………….      65,500

Depreciation Expense……………………………      200,000

Amortization Expense……………………………    30,000

Total Operating Expenses………………………..     $ 1,294,000

Loss before Interest and Taxes…………………...     $ (544,000)

Interest Expense………………………………….     (75,110)

Franchise Fees…………………………………….    8,950

Loss from Continuing Operations before Tax…....     $ (610,160)

Income Tax Benefit (Expense)……………………     $ 244,064

Increase in Valuation Allowance………………….   (44,064)

Net Tax Benefit……………………………………    $ 200,000

Loss from Continuing Operations………………….   $ (410,160)

Discontinued Operations–net of tax………………..             20,500

Net Loss…………………………………………….  $ (389,660)

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SuperView Company Balance Sheets At December 31 Assets Current Year Prior Year Current Assets $ 98,840 75,890 189.750 300,000 749,340 565,640 Accounts Receivable, net Merchandise Inventory 200,500 450,000 Total Current Assets Noncurrent Assets Property, Plant, and Equipment-net Intangible Assets -net Deferred TaxAsset net $2,185,000 $1500,000 168,750 200,000 0 $2590000 $1.668 750 $3,339,340 $2,234,390 205,000 Total Noncurrent Assets Total Assets Liabilities Current Liabilities Current Portion of Long term Debt Accounts Payable Income Taxes Payable S 75,000 386,750 50,000 190,000 80,000 Total Current Liabilities Noncurrent Liabilities Notes Payable 461.750 320,000 S 504 425 S 303750 504,425 303.750 $ 966,175 623,750 Total Noncurrent Liabilities Total Liabilities Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital Retained Earnings $ 969.375 608.875 750,000 210.340 600000 $3,159.715 $1958 875 ,980,000 Total Shareholders Equity Less: Treasury Stock at Cost Total Liabilities and Shareholders Equity (7865501348 235 3,339.340 $,234.390