Working backward to cash receipts and disbursement Exhibit 2.22 presents the comparative balance sheet of The Secunda Company as of the beginning and end of 2008. Exhibit 2.23 presents the income statement for 2008. The company makes all sales on account and purchases all goods and services on account The Other Operating Expenses account includes depreciation charges and expirations of prepayments. The company debits Dividends Declared during the year to Retained Earnings. Prepare a schedule showing all cash transactions for 2008.

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The Secunda Company Balance Sheet December 31, 2008 and December 31, 2007 (Problem 43) EXHIBIT 2.22 December 31, 2008 2007 ASSETS Cash.. $ 20,000 $ 9,000 Accounts Receivable 51,000 36,000 Merchandise Inventory 60,000 45,000 Prepayments 1,000 2,000 Total Current Assets. $103,000 $ 40,000 (16,000) $ 24,000 S121,000 $ 40,000 (18,000) Land, Buildings, and Equipment (at cost) Less Accumulated Depreciation. Land, Buildings, and Equipment (net) S 22,000 Tatal Assets $143,000 $127,000 LIABILITIES AND SHAREHOLDERS EQUITY S 1,000 $ 2,000 Interest Payable ... Accaunts Payable . 40,000 30,000 S 31,000 $ 42,000 Tatal Current Liabilities Mortgage Payable . Tatal Liabilities.. Common Stock. 17,000 20,000 S 51,000 S 50,000 $ 59,000 5 50,000 Retained Earnings Tatal Shareholders Equity. Tatal Liabilities and Shareholders' Equity 34,000 S 84,000 26,000 S 76,000 $143,000 $127.000 The Secunda Company Income Statement EXHIBIT 2.23 For Year ended December 31, 2008 (Problem 43) Sales Revenue $100,000 Less Expenses: Cost of Goods Sold Interest Expense.. Other Operating Expenses Total Expenses $ 50,000 3,000 29,000 S 82,000 ...... $ 18,000 Net Income ...